James has a balance of $1,230 on his credit card that has an APR of 24%. He currently pays the minimum monthly payment of $30.75. If James wants to pay off his balance in 18 months, determine the monthly payment he would need to make. Choose the following modification with the least cuts to his current expenses that will allow James to pay off his balance in 18 months.

Income
Wages
$3,015.00
Expenses
Rent
$1250.00

Utilities
$432.45

Food/Clothes
$345.00

Entertainment
$255.00

Car
$360.00

Credit Card
$30.75

Cell Phone
$103.89
Net Income

$237.91

a.
James can eliminate $83 from Food/Clothes.
b.
James can eliminate $25 from Food/Clothes and $27 from Entertainment.
c.
Addison can eliminate $15 from Food/Clothes and $22 from Entertainment.
d.
The minimum payment is enough to pay off the balance within 24 months.

The least cuts to expenses that will allow him pay off his balance in 18 months is: B. James can eliminate $25 from Food/Clothes and $27 from Entertainment.

Given the following data:

Principal = $1,230.

APR = 24% = 0.24.

Time = 18 months.

Note: Interest rate, r = 0.24 = 0.24/12 = 0.02.

How to calculate monthly payment?

Mathematically, the monthly payment on a credit card can be calculated by using this formula:

[tex]M=P(\frac{r}{1-(1+r)^{-nt}} )[/tex]

Where:

P is the principal.

r is the interest rate.

M is the monthly payment.

t is the time.

n is the number of times it's compounded.

In this scenario, the least cuts to current expenses that would allow him pay off his balance in 18 months is by eliminating $25 from Food/Clothes ($345.00) to have $325.00 and $27 from Entertainment ($255.00) to have $228.00 respectively.

Read more on interest rate here: https://brainly.com/question/24341207

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