SOLUTION: You have $3,500 on a credit card that charges a 21% interest rate. If you want to pay off the credit card in 4 years, how much will you need to pay each month (assuming you don't c

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Question 1160117: You have $3,500 on a credit card that charges a 21% interest rate. If you want to pay off the credit card in 4 years, how much will you need to pay each month (assuming you don't charge anything new to the card)?
Found 2 solutions by Theo, MathTherapy:
Answer by Theo(13342)   (Show Source): You can put this solution on YOUR website!
use a financial calculator such as the one found on https://arachnoid.com/finance/index.html
your inputs need to be:
present value = 3500
future value = 0
number of periods = 4 years * 12 months per year = 48 months
payment amount = what you want to find
interest rate per period (%) = 21% per year / 12 = 1.75% per month
payment at the end of each month
after making your entries, click on pmt and the calculator will tell you that the amount you need to pay at the end of each month is $108.38.
your total payments are 48 * 108.38 = 5202.24
your total interest paid is 5202.24 minus 3500 = 1702.24
this is based on the payment each month provided by the online calculator, which rounds the monthly payment to the nearest penny.
your solution is that you have to pay $108.38 at the end of each month for 48 months to pay off the balance, assuming you don't charge anything new to the card.
Answer by MathTherapy(10552)   (Show Source): You can put this solution on YOUR website!

You have $3,500 on a credit card that charges a 21% interest rate. If you want to pay off the credit card in 4 years, how much will you need to pay each month (assuming you don't charge anything new to the card)?
I wouldn't depend on an online or any other financial calculator to find the answer to a PROBLEM like this! However, after the answer is derived, I would

use an online or any other financial calculator to determine whether or not my answer is correct!

The formula to use is: , with  

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