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The question from the image is:

"Consider a credit card with a balance of $8000 and an APR of 15.99%. In order to pay off the balance in 1 year, what monthly payment would you need to make? Round your answer to the nearest cent, if necessary."

To solve this, we need to use the formula for calculating the monthly payment required to pay off a credit card balance:

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

Where:
- $M$ is the monthly payment.
- $P$ is the principal (initial balance), which is $8000.
- $r$ is the monthly interest rate, which is the annual percentage rate (APR) divided by 12.
- $n$ is the total number of payments (12 months for 1 year).

Given that the APR is 15.99%, we convert this to a decimal and divide by 12 to find the monthly interest rate:

\[
r = \frac{15.99}{100 \times 12} = 0.013325
\]

Next, we will calculate the monthly payment by plugging these values into the formula.

Let me calculate that for you.The monthly payment needed to pay off the $8000 balance with an APR of 15.99% in 1 year is **$725.81**, rounded to the nearest cent.

Would you like more details or have any questions? Here are five related questions to expand your understanding:

1. How would the payment change if the APR was lower, say 10%?
2. What if the repayment period was extended to 2 years? How would the monthly payment differ?
3. Can you explain how compounding interest affects the monthly payments?
4. How do minimum monthly payments work on a credit card with a balance?
5. What other methods can be used to calculate credit card payments with variable interest rates?

**Tip**: Paying more than the minimum monthly payment helps reduce interest costs over time.

Consider a credit card with a balance of $8000 and an APR of 15.99%. In order to pay off the balance in 1 year, what monthly payment would you need to make? Round your answer to the nearest cent, if necessary.

Learn how to calculate the monthly payment needed to pay off a credit card with a balance of $8000 and an APR of 15.99%. This problem covers key financial concepts, including interest rates and loan payment formulas. Suitable for students in Grades 10-12.

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