13
QuizMultiple Choice

Debt Management

Question 13 • [PERFIN] Personal Finance, Sem 2 (26-27)

Jose wants to pay off his credit card balances within 18 months. He is trying to decide if he should use his $1,750 in savings to pay off part of the balances or if he should transfer the balances to a new card with a low introductory rate. The new credit card has an introductory rate of 8% but charges a balance transfer fee of $60 for each balance transfer. Jose decides to pay off Credit Card B using his savings and then transfer the balance of Card A to the new card. Which of the following options shows the amount of Jose's new monthly payment?Credit Card A: $1,154Credit Card B: $1,469

Answer
A
$90.43
B
$68.25
C
$71.80
D
$75.34

Explanation

Jose transfers Card A’s $1,154 balance, and the $60 transfer fee makes the new-card balance $1,214. At 8% annual interest over 18 months, the monthly payment is about $71.80 using the standard installment-payment calculation. The correct choice is $71.80.

AI-written and checked against the verified answer.

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