Gina wants to pay off her credit card balances within 24 months. She is trying to decide if she should use her $2,000 in savings to pay off part of the balances or if she should transfer the balances to a new card with a low introductory rate. The new credit card has an introductory rate of 9% but charges a balance transfer fee of $75 for each balance transfer. Evaluate Gina's options and recommend the debt management plan that results in the lowest monthly payment.Credit Card A: $1,354
Credit Card B: $1,678
a.
Pay off Credit Card B using the savings. Transfer the balance of Credit Card A to the new card.
b.
Pay off Credit Card A using the savings. Transfer the balance of Credit Card B to the new card.
c.
Pay off $1,000 from both Credit Card A and Credit Card B. Transfer the remaining balances from both cards to the new card.
d.
Pay off all of Credit Card B and $322 of Credit Card A. Transfer the remaining balance of Credit Card A to the new card.

The debt management plan that would result in the lowest monthly payment is: D. Pay off all of Credit Card B and $322 of Credit Card A. Transfer the remaining balance of Credit Card A to the new card.

What is a credit card?

A credit card can be defined as a small rectangular-shaped plastic card that is issued by a financial institution (banks) to its customers, which allows them to purchase goods and services on credit, especially based on the agreement that the amount of money would be paid later with an agreed upon interest rate.

How to calculate monthly payment.

Mathematically, the monthly payment for an item is given by 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 or number of years.

n is the number of times it's compounded.

In this scenario, Gina should pay off all of the debt on Credit Card B ($1,678) and $322 of Credit Card A. Also, she should transfer the remaining balance of Credit Card A ($1,032) to her new credit card.

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