tim has four credit cards with the balances and aprs listed in the chart below. what will tims total monthly minimum credit card payment need to be to pay off all four credit cards in 24 months?

\begin{tabular}{|c|c|c|}
\hline
credit card & balance & apr \\
\hline
a & \$1,260.00 & 12\% \\
\hline
b & \$900.00 & 18\% \\
\hline
c & \$1,290.00 & 9\% \\
\hline
d & \$1,200.00 & 16\% \\
\hline
\end{tabular}

a. \$118.24
b. \$162.62
c. \$163.00
d. \$221.93

Question

tim has four credit cards with the balances and aprs listed in the chart below. what will tims total monthly minimum credit card payment need to be to pay off all four credit cards in 24 months?

\begin{tabular}{|c|c|c|}
\hline
credit card & balance & apr \\
\hline
a & \$1,260.00 & 12\% \\
\hline
b & \$900.00 & 18\% \\
\hline
c & \$1,290.00 & 9\% \\
\hline
d & \$1,200.00 & 16\% \\
\hline
\end{tabular}

a. \$118.24
b. \$162.62
c. \$163.00
d. \$221.93

Accepted Answer

{ "quality": "clear", "question_count": 1, "skills_matched": [ "step_cot", "multiple_choice_formatter", "explain_then_answer", "tutor", "mastery_adaptive_brevity" ], "needs_drawing": false, "concepts_used": [ "Amortized Payment Calculation", "Table Reading" ], "new_concepts": [], "current_concepts": [ "Amortized Payment Calculation", "Table Reading", "Credit Card Amortization" ] } ## Extract data from the table Using the *Table Reading* knowledge point $$ \begin{aligned} &\text{Card A: } P_A = \$1,260.00, \quad r_A = 12\% = 0.12\ &\text{Card B: } P_B = \$900.00, \quad r_B = 18\% = 0.18\ &\text{Card C: } P_C = \$1,290.00, \quad r_C = 9\% = 0.09\ &\text{Card D: } P_D = \$1,200.00, \quad r_D = 16\% = 0.16\ &\text{Term: } N = 24 \text{ months} \end{aligned} $$ ## Calculate monthly payment for Card A Using the *Amortized Payment Calculation* knowledge point $$ \begin{aligned} &i_A = \frac{0.12}{12} = 0.01\ &M_A = 1260 \times \frac{0.01(1.01)^{24}}{(1.01)^{24} - 1} \approx 59.28 \end{aligned} $$ ## Calculate monthly payment for Card B Using the *Amortized Payment Calculation* knowledge point $$ \begin{aligned} &i_B = \frac{0.18}{12} = 0.015\ &M_B = 900 \times \frac{0.015(1.015)^{24}}{(1.015)^{24} - 1} \approx 44.91 \end{aligned} $$ ## Calculate monthly payments for Cards C and D Using the *Amortized Payment Calculation* knowledge point $$ \begin{aligned} &i_C = \frac{0.09}{12} = 0.0075\ &M_C = 1290 \times \frac{0.0075(1.0075)^{24}}{(1.0075)^{24} - 1} \approx 58.98\ &i_D = \frac{0.16}{12} \approx 0.013333\ &M_D = 1200 \times \frac{0.013333(1.013333)^{24}}{(1.013333)^{24} - 1} \approx 58.76 \end{aligned} $$ ## Sum the monthly payments Using the *Amortized Payment Calculation* knowledge point $$ \begin{aligned} &M_{\text{total}} = M_A + M_B + M_C + M_D\ &M_{\text{total}} \approx 59.28 + 44.91 + 58.98 + 58.76 = 221.93 \end{aligned} $$

a. $118.24

b. $162.62

c. $163.00

d. $221.93

{ "subject": "Mathematics", "question_type": "Multiple Choice", "knowledge_point": [ "Mathematics", "Algebra", "Amortized Payment Calculation" ] }

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QUESTION IMAGE

Question

Explanation:

Extract data from the table

Calculate monthly payment for Card A

Calculate monthly payment for Card B

Calculate monthly payments for Cards C and D

Sum the monthly payments

Answer: