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March 28, 2017

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Jeremy has a balance owing of $4000 on his credit card. The credit-card company charges 18.0% annual interest, compounded monthly.

1.) If Jeremy makes payments of $300 every month, how much will he still owe after making 12 payments?

2.)Determine the monthly payment necessary to have the loan paid off in full after 12 payments.

Not sure if I did part 1 right.
N= 4000(1+0.18/12)^.18/12
= 33422784=$334.23
Part 2 I was going to do $334.23/12=27.85 but it doesn't make sense. Any help would be greatly appreciated.

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