Question

wilbur has a balance of $3740 on his credit card, which he plans to pay off by making a payment of the same amount each month. which of these monthly amounts will allow wilbur to pay off his balance the fastest?

$65
$70
$55
$60

Answer 1

To determine which monthly payment will allow Wilbur to pay off his credit card balance of $3740 the fastest, we can calculate how many months it would take for each payment amount. The formula to find the number of months to pay off the balance is:

\[
\text{Number of Months} = \frac{\text{Total Balance}}{\text{Monthly Payment}}
\]

Let's calculate for each monthly payment:

1. **$65 per month:**
\[
\frac{3740}{65} \approx 57.5385 \text{ months} \approx 58 \text{ months}
\]

2. **$70 per month:**
\[
\frac{3740}{70} \approx 53.4286 \text{ months} \approx 54 \text{ months}
\]

3. **$55 per month:**
\[
\frac{3740}{55} \approx 67.6364 \text{ months} \approx 68 \text{ months}
\]

4. **$60 per month:**
\[
\frac{3740}{60} \approx 62.3333 \text{ months} \approx 63 \text{ months}
\]

Now let's summarize the results:

- **$65 per month:** 58 months
- **$70 per month:** 54 months
- **$55 per month:** 68 months
- **$60 per month:** 63 months

The monthly payment of **$70** will allow Wilbur to pay off his balance the fastest, taking approximately **54 months**.