You decide to quit using your credit card and want to pay off the balance of $9,100 in 3 years making equal monthly payments during this entire "pay back" period.
Your interest rate is 14.85% compounded monthly.
What will your monthly payments be?
(Hint: This is like taking out a loan for the entire amount owed and paying it back over this period of time. Use the loan formula to find the monthly payment.)
$
How much interest do you pay in total over this period?
(Hint: Again, use tools from loans. HINT to obtain correct number for this part: Do not retype the payment rounded to the closest cent. Instead, keep more decimal places of the payment to use in the "total over the life of the laon" and "interest" calculations. Otherwise you will be off by several cents compared to the answer programmed here.)
$
What will your monthly payments be?
(Hint: This is like taking out a loan for the entire amount owed and paying it back over this period of time. Use the loan formula to find the monthly payment.)
$
How much interest do you pay in total over this period?
(Hint: Again, use tools from loans. HINT to obtain correct number for this part: Do not retype the payment rounded to the closest cent. Instead, keep more decimal places of the payment to use in the "total over the life of the laon" and "interest" calculations. Otherwise you will be off by several cents compared to the answer programmed here.)
$