Assume You Have a Balance of $3200 on Your Credit

question 97

Multiple Choice

Assume you have a balance of $3200 on your credit card that you want to pay off. Calculate your monthly payment andtotal payment under the given conditions. Assume you make no additional charges to the card.
-The credit card APR is 18% and you want to pay off the balance in 4 years.

• A)$112.91; $5419.89
• B)$130.64; $6270.75
• C)$80.51; $3864.62
• D)$94.00; $4512.00

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Definitions:

Self-Employment Taxes

Taxes that must be paid by individuals who work for themselves, covering Social Security and Medicare contributions.

Net Earnings

The amount of income left over after all expenses and taxes have been subtracted from total revenue, often referred to as net income.

FICA Withholding

The process of automatically deducting Social Security and Medicare taxes from an employee's paycheck, contributing to their future benefits.

FICA Tax

Taxes under the Federal Insurance Contributions Act, funding Social Security and Medicare, paid by both employees and employers.