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Jeff has a balance of $2,513. 77 on his credit card. He would like to pay off his card over the course of a year and a half by making identical monthly payments. The APR on his card is 10. 66%, compounded monthly. Assuming that Jeff makes no additional purchases with his card, how much will he have to pay every month to reach his goal? (Round all dollar values to the nearest cent. ) a. $151. 73 b. $162. 57 c. $139. 65 d. $147. 64.

Sagot :

Marvineetesh3idn

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.

What is a 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:

https://brainly.com/question/14716152

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