Question

34. A MasterCard statement shows a balance of $510 at 13.9% compounded monthly. What monthly payment will pay off this debt in 1 year 4 months? (Round your answer to the nearest cent.)

Answer 1

Answer:

The monthly payment is $35.10.

Step-by-step explanation:

p = 510

r = $13.9/12/100=0.011583$

n = $12+4=16$

The EMI formula is :

$\frac{p\times r\times(1+r)^{n} }{(1+r)^{n}-1 }$

Now putting the values in formula we get;

$\frac{510\times0.011583\times(1+0.011583)^{16} }{(1+0.011583)^{16}-1 }$

=> $\frac{510\times0.011583\times(1.011583)^{16} }{(1.011583)^{16}-1 }$

= $35.10

Therefore, the monthly payment is $35.10.