Sarah has a credit card balance of $9,450 with an apr of 17%. with her current budgeted payment, sarah will be able to pay off this debt in 36 months. but sarah’s best friend just invited her to spend two months in europe with her in 9 months. wanting to have her credit card balance paid off before she goes to europe, sarah decides to take on a second job. what additional monthly income will sarah need in order to pay off her credit card in 9 months?

The answer is: $788.85 additional monthly income

Explanation:

If Sarah would have followed her original payment schedule, she would need to pay $336.92 every month for the next three years to pay her full credit card balance (36 equal monthly payments, APR = 17%, total debt = $9,450).

Since she plans to travel to Europe, she will need to reduce the number of payments from 36 to 9, so the new monthly payments will be $1,125.77 (9 equal monthly payments, APR = 17%, total debt = $9,450). That means her new monthly payments will increase by $788.85, and that is the amount she must get from her new job.

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