Alex wants to pay off his credit card balance before he gets married. He decides to take the $2,300 out of his savings and apply it to his credit card debt of $5,390. The credit card has an APR of 16.5%. What will Alex's minimum monthly credit card payment be in order to pay off his debt in 14 months?

First subtract the $2,300 Alex pays from savings: $5,390 − $2,300 = $3,090 left on the card. The monthly interest rate is 16.5% ÷ 12 = 1.375%. Using the fixed-payment loan formula for 14 months gives a payment of about $244.15 per month, so the best answer is $244.15.

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