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Mr.Debt has 3 credit cards. First card have \$5,000 balance with the rate of 10% compounded monthly. Second card have \$2,000 balance with the rate of 14% compounded monthly. Third card have \$4,000 balance with the rate of 8% compounded monthly. All card have minimal payment of 1% + each month interest . Mr.Debt want to set a fix amount of payment per month. How much will Mr.Debt will have to pay as little as possible and still payoff his debt in 24 months.

Please Help.

I found the formula to do a single credit card which is http://www.algebra.com/algebra/homework/word/finance/Money_Word_Problems.faq.question.321982.html but does not seem to work with multiple credit card.

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    Where did you get this question? It's pretty complicated. I mean, first you're going to pay off the second card because it has the highest interest rate. Then, you will do the first, and finally the third. But, all along, you're going to be making the minimum payments to the other cards. Since the amount of each payment is unknown, the amount of time it's going to take you to pay off the second card is an unknown. And, that fact makes it harder to find the amount of each payment. There's also the time it's going to take to finish the first card. That is, there are many variables here.2012-12-07
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    This question is created by me. As I comment above that i need to program some thing to solve something similar to the question so. and the minimum payment is 1% of the balance of each month + the interest it self. I do not know how credit card work exactly but this is what i think , if you have 12% apr / 12 month you will have 1% monthly interest. and minimum payment is 1% + 1% interest so I think it would be 2% of the balance of each month as minimum payment. I might be wrong but this is what i understand. If you know correct way Please let me know.2012-12-07
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    Essentially, you're making three different payment amounts each month, and each one affects the others. And, how long you will make two of the payments is unknown. In the real world, what you would do is try to get a new credit card with a 0% interest rate and transfer your balances to that one. :)2012-12-07
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    yes the most efficient way is to pay off the highest interest rate first which is gonna be the first card to payoff which the balance will be 0 before the end of 24 months and so on to the second card and the third card will end at 24 months with the same fix payment from the first month until it is over. Yes it is very hard and i do need a lot of help. Thank you.2012-12-07

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