Answer:
$303
Explanation:
To find the answer, we first convert the 19.9% annual rate to a monthly rate. The conversion results in a 1.5% monthly rate.
Next, we use the present value of an annuity formula to find the answer:
$4,938 = X [1 - (1 + 0,015)^-12] / (0,015)
$4,938 = X (10,9)
$4,938 / 10,9 = X
$453 = X
So, to pay off the credit card balance in one year, the monthly annuity is $453.
$453 - $150 = $303
So, the additional amount that Lamar would have to pay is $303
The amount that should increase the monthly payment is $303.
Since Lamar has budgeted to pay $150 each month on his credit card which has a $4,938 balance and has an annual finance rate of 19.9%.
here we need to used the present value of an annuity formula
So,
$4,938 = X [1 - (1 + 0,015)^-12] / (0,015)
$4,938 = X (10,9)
$4,938 / 10,9 = X
$453 = X
Now the increment amount should be
= $453 - $150
= $303
So, the additional amount that Lamar would have to pay is $303
Learn more about credit card here: https://brainly.com/question/18841332
