## June has a credit card balance of $4,350 that comes with a 19% APR. She would like to have the balance paid off in the next 8 months, but sh Question June has a credit card balance of$4,350 that comes with a 19% APR. She would like to have the balance paid off in the next 8 months, but she is having trouble making the monthly payments required to do so. In order to lower her monthly payments, she decides to sell her porcelain doll collection for $2,000 to apply directly to her credit card balance. June still wants to pay off the balance in 8 months. By applying the doll money, how much has June lowered her minimum monthly payment? a.$145.62

b. $268.14 c.$315.06

d. $583.20 0 ## Answers ( No ) 1. Answer: b.$268.14

Step-by-step explanation:

Original credit card monthly payment =

where

Principal= $4350 i= 19/12/100=0.01583 n= 8 Putting the values in formula we get: We get A1=$583.19

Now, she paid $2000 making new principle =$2350

i and n are same.

We get A2=315.06

Difference between A1 and A2=

Therefore, June lowered her minimum monthly payment by \$268.13 close to option B.

Hence, option B is correct.

2. It’s B on E2020, I just took the test.