Addison has a balance of $3,450 on her credit card that has an APR of 18%. She currently pays the minimum monthly payment of $86
.25. If Addison wants to pay off her balance in 24 months, determine the monthly payments she would need to make. Choose the following modification with the least cuts to her current expenses that will allow Addison to pay off her balance in 24 months. Income
WAgES
$2,278.00
EXPENSES
Rent
$950.00
Utilities
$232.45
Food/Clothes
$445.00
Entertainment
$270.00
Car
$200.00
Credit Card
$86.25
Cell Phone
$77.89
Net Income $16.41
a.
Addison can eliminate $73 from Food/Clothes and $100 from Entertainment.
b.
Addison can eliminate $45 from Food/Clothes and $41 from Entertainment.
c.
Addison can eliminate $25 from Food/Clothes and $22 from Entertainment.
d.
The minimum payment is enough to pay off the balance within 24 months.
ANSWER IS B)Addison can eliminate $45 from Food/Clothes and $41 from Entertainment.
