# James owes $6,927 on a credit card with a 19.5% interest rate. What is the monthly payment he should make to pay off this debt in 12 months, assuming he does not charge any more purchases with the card? a-$1531.34

b- $577.25 c-$124.82

d- $640.02 My answer is D ## correct ## thank you ## To determine the monthly payment James should make to pay off his credit card debt in 12 months, we can use the formula for the monthly payment on a loan, which is given by: $M = \frac{P \times r \times (1+r)^n}{(1+r)^n - 1}$ where: - M is the monthly payment - P is the principal amount (the amount James owes) - r is the monthly interest rate - n is the number of months Let's calculate it step-by-step: First, let's convert the annual interest rate to a monthly interest rate. We divide the annual interest rate by 12: $r = \frac{19.5}{100 \times 12} = 0.01625$ Next, substitute the given values into the formula: $M = \frac{6927 \times 0.01625 \times (1+0.01625)^{12}}{(1+0.01625)^{12} - 1}$ Calculate the numerator: $Numerator = 6927 \times 0.01625 \times (1+0.01625)^{12} \approx 1303.93$ Calculate the denominator: $(1+0.01625)^{12} - 1 \approx 0.2771$ Finally, divide the numerator by the denominator to find the monthly payment: $M = \frac{1303.93}{0.2771} \approx 4703.39$ Based on the calculations, the monthly payment James should make to pay off his credit card debt in 12 months is approximately$4703.39, which is not one of the given options.

So, it seems there might be an error in the options provided.

## To calculate the monthly payment James should make to pay off his debt in 12 months, we can use the formula for monthly payment on a loan or credit card balance. The formula is:

Monthly Payment = (Principal + (Principal * Interest Rate)) / Number of Months

Given:
Principal (Amount owed) = $6,927 Interest Rate = 19.5% per year Number of Months = 12 Let's calculate the monthly payment using the formula: Interest Rate per Month = Interest Rate / 12 months = 19.5% / 12 = 0.0195 / 12 = 0.001625 Monthly Payment = ($6,927 + ($6,927 * 0.001625)) / 12 = ($6,927 + $11.26) / 12 =$6,938.26 / 12
= $578.19 The monthly payment to pay off the debt in 12 months is approximately$578.19.

a- $1531.34 b-$577.25
c- $124.82 d-$640.02
Option D- $640.02 is closest to our calculated value of$578.19, but it is not an exact match. Therefore, your answer seems incorrect.