Answer:
c. $475.67
Step-by-step explanation:
Card payments can be found using the amortization formula:
A = P(r/n)/(1 -(1 +r/1)^(-nt))
where P is the card balance, r is the annual interest rate, n=12, and t=3, the number of years to payoff.
When the calculation is repetitive, it is convenient to use a calculator or spreadsheet to do the calculations.
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<h3>payments on each card</h3>A calculator shows the payments on the cards to be ...
- $156.16
- $50.04
- $96.00
- $173.33
Then the sum of payments is ...
$156.16 +50.04 +96.00 +173.33 = $475.53
The closest answer choice is ...
c. $475.67
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<em>Additional comment</em>
The payment amount can be reduced to about $458.45 by consolidating the balances to the card charging 15% interest.
