Suppose you have $4500 in credit card debt. If the APR is 19.99%, what should you pay each month so that
the balance will be paid off in 5 years?

$118.9722281

Step-by-step explanation

The loan formula follows:

P_o = d(1-(1+(r/k))^-Nk / (r/k)

where,

P_o = principal value of the loan = 4500

r = APR in decimal = 0.199

N = number of years to be paid = 5 years

k = rate of payment (monthly,annually,bi-monthly,etc) = 12 since monthly payment and there are 12 months in a year

d = payment = ???

4500 = d(1-(1+(0.199/12)^-5(12) / (0.199/12)

d = (4500(0.199/12)) / (1-(1+(0.199/12)^-5(12))

Solving for d, and we will get:

d= 118.9722281