Consider a credit card with a balance of $8500
 and an APR of 16.99%
. In order to pay off the balance in 2
 years, what monthly payment would you need to make? Round your answer to the nearest cent, if necessary.

To calculate the monthly payment needed to pay off a credit card balance over a fixed period of time with a fixed APR, we can use the formula for the monthly payment $ M $ on a loan or credit card debt:

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

where:
- $ P $ is the principal balance (here, $8500),
- $ r $ is the monthly interest rate (the APR divided by 12 months),
- $ n $ is the total number of payments (in this case, $ 2 $ years times $ 12 $ months).

Given:
- **Balance (P)** = 8500
- **APR** = 16.99%, so the monthly rate $ r = \frac{16.99\%}{12} = 0.01699 / 12 $
- **Term (n)** = 2 years * 12 months = 24 months

### Step 1: Calculate the monthly interest rate
\[
r = \frac{16.99}{100 \times 12} = 0.0141583
\]

### Step 2: Substitute values into the formula
\[
M = \frac{8500 \times 0.0141583}{1 - (1 + 0.0141583)^{-24}}
\]

### Step 3: Solve for $ M $
Calculating this gives us the monthly payment required to pay off the balance in 2 years. Let’s go through the steps to get the answer.The monthly payment needed to pay off the balance of $8,500 at an APR of 16.99% over 2 years would be approximately **$420.22**.

Would you like a detailed breakdown of the steps, or do you have any questions?

### Related Questions:
1. How would the payment change if the term were 3 years instead of 2 years?
2. What would be the total interest paid over the 2 years?
3. How is the monthly interest rate calculated from the APR?
4. How much would be saved by making extra payments each month?
5. What is the impact of a higher APR on the monthly payment amount?

**Tip:** Paying slightly more than the minimum monthly payment can significantly reduce the total interest paid.

Consider a credit card with a balance of $8500 and an APR of 16.99%. In order to pay off the balance in 2 years, what monthly payment would you need to make? Round your answer to the nearest cent, if necessary.

Find the monthly payment needed to pay off a credit card balance of $8,500 with a 16.99% APR over 2 years. This solution includes a step-by-step approach, covering loan payment calculation, monthly interest rate conversion, and application of the monthly payment formula.

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