You have $3,000 on a credit card that charges a 12% interest rate. If you want...

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You have $3,000 on a credit card that charges a 12% interest rate. If you want...

You have $3,000 on a credit card that charges a 12% interest rate. If you want to pay off the credit card in 5 years, how much will you need to pay each month (assuming you don't charge anything new to the card)?

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Answer 1

Answer #1

We will a BA 2 Plus calculator to find the monthly payment to payoff our credit card bill:

N: 12*5 = 60

I/Y: 12%/12 = 1%

PV: $3,000

FV: 0

CMPT PMT

Monthly payment = $66.73

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Answer 2

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