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How much should robert pay per month if he wants to pay off

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Problem: Robert just received his credit card bill, which has an outstanding balance equal to $8,200. After reviewing his financial position, Robert has concluded that he cannot pay the outstanding balance in full; rather, he has to make payments over time to repay the credit car bill. After thinking about it, Robert decided to cut up his credit card. Now he wants to determine how long it will take to pay off the outstanding balance. The credit card carries a 24 percent interest rate which is compounded monthly. The minimum payment that Robert must make each month is $180.80. Assume that the only charge Robert incurs from month to month is the interest that must be paid on the remaining outstanding balance.

a. If Robert pays $180.80 (the minimum required payment) per month, how long will it take to pay off the credit card bill?

b. How much should Robert pay per month if he wants to pay off the credit card in 3 years (36 months)?

Reference no: EM132465996

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