Question 8 • Personal Finance - EL3403
To pay off the extra $1,600 in 16 months, calculate the monthly payment for that additional balance. Using a monthly interest rate of 19% ÷ 12, the payment is $1,600 × (0.19 ÷ 12) ÷ [1 − (1 + 0.19 ÷ 12)^−16], which is about $113.99. So Kimberly’s monthly payment must increase by $113.99, choice B.
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