To calculate how much you need to pay each month to pay off a credit card balance of $4,500 in 5 years at an interest rate of 17%, we can use the formula for the monthly payment of a loan:

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

Where:

• $M$ is the monthly payment
• $P$ is the principal (initial balance) = $4,500
• $r$ is the monthly interest rate = annual interest rate ÷ 12 = $\frac{17\%}{12} = 0.17/12 = 0.014167$
• $n$ is the number of monthly payments = 5 years × 12 months/year = 60 months

Now, let's plug these values into the formula:

$M = \frac{4500 \cdot 0.014167 \cdot (1 + 0.014167)^{60}}{(1 + 0.014167)^{60} - 1}$

Let me calculate that for you. Given values P = 4500 # Principal annual_interest_rate = 0.17 # Annual interest rate monthly_interest_rate = annual_interest_rate / 12 # Monthly interest rate n = 5 * 12 # Number of months (5 years)

Formula for monthly payment

M = (P * monthly_interest_rate * (1 + monthly_interest_rate)**n) / ((1 + monthly_interest_rate)**n - 1) MThe monthly payment required to pay off the credit card balance of $4,500 in 5 years with a 17% annual interest rate is approximately $111.84.

Would you like more details on how this calculation works, or do you have any other questions?

Here are some related questions you might find useful:

1. How would the monthly payment change if the interest rate were 15% instead of 17%?
2. What would happen to the total interest paid if you paid off the balance in 3 years instead of 5 years?
3. How would making larger monthly payments affect the total amount of interest paid?
4. What are some strategies to pay off high-interest credit card debt faster?
5. How do credit card companies typically calculate monthly interest?

Tip: Paying off credit card debt faster can significantly reduce the total interest you end up paying, so if possible, consider increasing your monthly payments.