Answer:
To calculate the monthly payment needed to pay off a credit card debt of $3500 at an interest rate of 16.83% over a period of 3 years, we can use the following formula:
Monthly Payment = [ P * r * (1 + r)^n ] / [ (1 + r)^n - 1 ]
Where:
P = the principal amount (initial debt) = $3500
r = the monthly interest rate (APR/12) = 16.83% / 12 = 0.014025
n = the total number of monthly payments = 3 years * 12 months/year = 36
Substituting the values into the formula, we get:
Monthly Payment = [ 3500 * 0.014025 * (1 + 0.014025)^36 ] / [ (1 + 0.014025)^36 - 1 ]
= $124.57 (rounded to the nearest cent)
Therefore, you would need to pay approximately $124.57 per month to pay off the credit card debt of $3500 at an interest rate of 16.83% over a period of 3 years.