Caitlin has a balance of $4,880 on her credit card that has an APR of 16%. She currently pays the minimum monthly payment of $105.86. If Caitlin wants to pay off her balance in 20 months, determine the monthly payment she would need to make. Choose the following modification with the least cuts to her current expenses that will allow Caitlin to pay off her balance in 20 months.
Income
Wages
$2,896.00
Expenses
Rent
$1200.00

Utilities
$212.64

Food/Clothes
$335.00

Entertainment
$346.00

Car
$490.00

Credit Card
$105.86

Cell Phone
$116.37
Net Income

$90.13

a.
Caitlin can eliminate $100 from Food/Clothes and $85 from Entertainment.
b.
Caitlin can eliminate $62 from Food/Clothes and $49 from Entertainment.
c.
Caitlin can eliminate $54 from Food/Clothes and $120 from Entertainment.
d.
The minimum payment is enough to pay off the balance within 20 months.

The modification that has the least cuts to her current expenses will be C. Caitlin can eliminate $54 from Food/Clothes and $120 from Entertainment.

What are current expenses?

It should be noted that current expenses are the simply the expenses that keep an individual or business going.

In this case, the modification with the least cuts to her current expenses that will allow Caitlin to pay off her balance in 20 months is that Caitlin can eliminate $54 from Food/Clothes and $120 from Entertainment.

This is important in order for her to cut her cost.

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