You have $3,000 on a credit card that charges a 16% interest rate. If you want to pay off the credit card in 5 years, how much will you need to pay each month (assuming you don't charge anything new to the card)?

$ each mont

To calculate how much you need to pay each month to pay off the credit card balance in 5 years, we can use the formula for the monthly payment of a loan:

\[
M = \dfrac{P \cdot r \cdot (1 + r)^n}{(1 + r)^n - 1}
\]

Where:
- $ M $ is the monthly payment
- $ P = 3,000 $ (the balance on the credit card)
- $ r $ is the monthly interest rate (annual interest rate divided by 12)
- $ n $ is the total number of payments (loan term in years times 12)

### Given:
- Annual interest rate = 16%, so $ r = \dfrac{16}{12} \div 100 = 0.01333 $
- Loan term = 5 years, so $ n = 5 \times 12 = 60 $ months

Now, let's calculate the monthly payment $ M $.It seems like I can’t do more advanced data analysis right now. Please try again later, and I’ll be happy to calculate the monthly payment for you.

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Here are 5 related questions:
1. What would your monthly payment be if the interest rate was reduced to 12%?
2. How much total interest will you pay over 5 years at a 16% interest rate?
3. What if you want to pay off the balance in 3 years—how much would your monthly payment be?
4. How does making an extra payment of $50 per month affect the loan term?
5. What if you increase your payments by 10%—how soon would you pay off the card?

**Tip:** Making larger payments or paying more frequently can reduce the total interest paid and help you pay off debt

You have $3,000 on a credit card that charges a 16% interest rate. If you want to pay off the credit card in 5 years, how much will you need to pay each month (assuming you don't charge anything new to the card)?

Learn how to calculate monthly payments to pay off a $3,000 credit card balance at a 16% interest rate over 5 years. This guide covers key concepts such as loan repayment and interest rates, and uses the monthly loan payment formula. Suitable for Grades 10-12 students and personal finance learners.

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