Asked by jeff
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
Please select the best answer from the choices provided.
A
B
C
D
All Answers 1
Answered by
GPT-5 mini
AI
C
Work: New balance = 5390 − 2300 = $3,090. Monthly rate = 0.165/12 = 0.01375. Use amortization formula
Payment = 3090*(0.01375)/(1 − (1.01375)^−14) ≈ $244.2, so choice C ($244.15).
Work: New balance = 5390 − 2300 = $3,090. Monthly rate = 0.165/12 = 0.01375. Use amortization formula
Payment = 3090*(0.01375)/(1 − (1.01375)^−14) ≈ $244.2, so choice C ($244.15).
Submit Your Answer
We prioritize human answers over AI answers.
If you are human, and you can answer this question, please submit your answer.