Respuesta :
The amount Michelle needs to pay every month for all 4 cards to clear in 36 months is $561.06.
Given to us
Credit Card Balance APR
- #1 $4,380 17%
- #2 $1,365 19%
- #3 $2,480 23%
- #4 $5,000 15%
What is the interest on all the cards for 36 months?
We know that the interest on all the cards is for 36month(3 years), therefore, the interest will be paid for three years,
#1. We will use the formula of simple interest, therefore,
[tex]\rm Total\ Amount\ of\ Card1 = P+ \dfrac{P \times R \times T}{100}[/tex]
[tex]\rm Total\ Amount\ of\ Card1 = 4380 +\dfrac{4380 \times 0.17 \times 3}{100} = \$6,613.8[/tex]
#2. We will use the formula of simple interest,
[tex]\rm Total\ Amount\ of\ Card2 = P+ \dfrac{P \times R \times T}{100}[/tex]
[tex]\rm Total\ Amount\ of\ Card2 = 1365 +\dfrac{1365\times 0.19 \times 3}{100} = \$2,143.05[/tex]
#3. We will use the formula of simple interest,
[tex]\rm Total\ Amount\ of\ Card3 = P+ \dfrac{P \times R \times T}{100}[/tex]
[tex]\rm Total\ Amount\ of\ Card3 = 2480+\dfrac{2480\times 0.23 \times 3}{100} = \$4,191.2[/tex]
#4. We will use the formula of simple interest,
[tex]\rm Total\ Amount\ of\ Card4 = P+ \dfrac{P \times R \times T}{100}[/tex]
[tex]\rm Total\ Amount\ of\ Card4 = 5000+\dfrac{5000\times 0.15 \times 3}{100} = \$7,250[/tex]
What is the total amount Michelle needs to pay?
We already have the total amounts from all the cards to pay,
Total amount = Total amount Card1 + Total amount Card2 + Total amount . Card3 + Total amount Card4
= $6,613.8 + $2,143.05 + $4,191.2 + $7,250
= $20198.05
What is the sum Michelle needs to pay every month?
Since Michelle needs to pay the amount in 36 months we will divide the total amount into 36 parts,
[tex]\rm Monthly\ installment = \dfrac{Total\ Amount}{36\ months}[/tex]
[tex]\rm Monthly\ installment = \dfrac{\$20,198.05}{36\ months} = \$561.0569[/tex]
Hence, the amount Michelle needs to pay every month for all 4 cards to clear in 36 months is $561.06.
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