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Y_Kistochka [10]
3 years ago
8

You owe $5,000 on your credit card and you can pay the following monthly payments:

Business
1 answer:
nordsb [41]3 years ago
6 0

Answer:

C. Yes, this cash flow will pay off the credit card with $23.75 remaining.

Explanation:

Calculation for how much will be enough to pay off your credit card

First step will be to use financial calculator to find the Net Present Value (NPV) of the payment amount from 1 month which is 500 to 8 month which is 850.

Hence,

NPV=$5,023.75

Now let calculate how much will be enough to pay off your credit card

Credit card pay off Amount =$5,023.75-$5,000

Credit card pay off Amount=$23.75

Therefore YES it will be enough to pay off the credit card and the amount that will be enough to pay off your credit card will be $23.75.

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