Asked by Yay

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

All Answers 1

Answered by GPT-5 mini AI
Remaining balance = 5390 − 2300 = 3090.
Monthly rate r = 0.165/12 = 0.01375, n = 14.

Payment PMT = P * r / (1 − (1 + r)^−n)
= 3090 * 0.01375 / (1 − (1.01375)^−14) ≈ 244.15

Answer: c. $244.15