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The Credit card is given by banks to their customers for making any payment. Jeff has to pay $151.52 every month to reach his goal to pay off the balance of the credit card.
A credit card is a bladed rectangular part of plastic released by a bank or financial services company.
It permits cardholders to acquire finances with which to pay off goods and services with businesspeople that accept cards for payment.
Computation of monthly payments:
Given,
Present Value(PV) = $2,513.77,
Number of period(n) = 18 months,
r = 10.66%,
Monthly interest fraction:
[tex]r=\dfrac{\frac{10.66\%}{12} }{100}\\\\\\r=0.008883[/tex]
P =?
Now, apply the formula of present value, we have
[tex]\text{PV}= \text{P}\times\dfrac{1+(1+i)^n-1}{i\times(1+i)^n}\\\\\\\$2,513.77 = \text{P}\times\dfrac{1+(1+0.00883)^1^8-1}{0.00883\times(1+0.00883)^1^8}\\\\\\\text{P}= \$151.52[/tex]
Therefore, the amount of monthly payment that Jeff would have to pay is $151.52.
Learn more about credit cards, refer to:
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