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As a New Year's resolution, Jimmy has agreed to pay off his 4 credit cards and completely eliminate his credit card debt within the next 12 months. Listed below are the balances and annual percentage rates for Jimmy's credit cards. In order to pay his credit card debt off in the next 12 months, what will Jimmy's total minimum credit card payment be? Credit Card Current Balance APR A $563. 00 16% B $2,525. 00 21% C $972. 00 19% D $389. 00 17% a. $321. 83 b. $361. 45 c. $374. 65 d. $411. 25.

Respuesta :

The total minimum credit card payment of Jimmy's credit card bill which he wants to pay as New Year's resolution is $449.24.

What is interest amount?

Interest is the amount charged on the principal amount with a fixed rate of interest for a time period.

As a New Year's resolution, Jimmy has agreed to pay off his 4 credit cards and completely eliminate his credit card debt within the next 12 months.

The balances and annual percentage rates for Jimmy's credit cards is,

Credit Card Current Balance        APR

A $563. 00 16%                            a. $321. 83

B $2,525. 00 21%                         b. $361. 45

C $972. 00 19%                            c. $374. 65

D $389. 00 17%                            d. $411. 25.

The monthly payment for credit car A is,

[tex]P_m=\dfrac{563}{{[1-(1+\dfrac{0.16}{12})]}^{\dfrac{-12}{0.16/12}}}\\P_m=51.08[/tex]

The total monthly payment is,

[tex]P_t=51.08\times12\\P_t=612.96[/tex]

Now, the charge of interest is,

[tex]I=612.96-563\\I=49.96[/tex]

Similarly, for credit card B is interset charge is $296.32 and for C is $102.96.

Thus, the total interest charge is,

[tex]I=46.96+296.32+102.96\\I=449.24[/tex]

Thus, the total minimum credit card payment of Jimmy's credit card bill which he wants to pay as New Year's resolution is $449.24.

Learn more about the interest here;

https://brainly.com/question/2294792

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