Cherie owes $6,230 on her Electronics Boutique credit card with a 20.4% interest rate. She owes $2,960 on her Miscellaneous Goods credit cards which has a 28.1% interest rate. What is the total monthly payment needed to pay off both cards in three years, assuming she makes fixed payments and does not charge any more purchases with the card?
I assume that you have the formula in your textbook for calculating these payments:
The monthly payment on her Electronics Boutigue credit card will be =$232.80 per month.
The monthly payment on her Misc. Goods credit card will be =$122.60 per month.
Her total monthly payments on both credit cards will be: $232.80 + $122.60 = $355.40 per month.
+36916 I answered a VERY similar question as this yesterday:
I think the formula you need is:
For the FIRST card P = 6230
A = P( i (1+i)^n / ((1+i)^n-1) A = monthly payment n = 36 payments i = periodic interest in decimal = 20.4/12=.017
For the SECOND card P = 2960 i = .0234
Substitute into the equation for EACH card then add the results together for her total monthly payment ...
Got it? Need more help?
