Question

Alex wants to pay off his credit card balance before he gets married. He decides to take the $2,300 out of his savings and apply it to his credit card debt of $5,390. The credit card has an APR of 16. 5%. What will Alex's minimum monthly credit card payment be in order to pay off his debt in 14 months? a. $109. 40 b. $190. 83 c. $244. 15 d. $572. 32.

Answer 1

$244.51

Explanation:

Credit card payment =$5390

After paying $2300 from savings account,

Remaining payment left = 5390-2300 = $3090

APR = 16.5% or 0.165

Time (t) = 14 months = 14/12 years

Using credit card payment calculator,

Monthly payment = $244.15

Hence, minimum monthly payment to be made to pay off the whole debt in 14 months = $244.15