In general, reducing the interest rate (i) of a credit card but keeping the present value (PV) and number of periods (n) the same will __________.

For the same debt balance (PV) and payoff period (n), a lower interest rate means less interest accumulates over time. Therefore, a smaller monthly payment is needed to pay off the debt within that period. The correct choice is “decrease the monthly payment (P) needed to pay off the debt.”

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