Question

Help will give medal and fan whoevr answer my q.... Samantha uses her credit card to pay for a collision repair that ended up totaling $1,433.41. She can pay off up to $500 a month. The card has an annual rate of 16.5%. How much will she pay in interest?
$236.51

$472.64

$47.24

$39.23

Answer 1

$39.23

Answer 2

@fernando22 how did u get tht

Answer 3

TIP:/ Make sure you divide the the annual rate by twelve before applying compound intrest formula. M = P( 1 + i )n

M is the final amount including the principal.

P is the principal amount.

i is the rate of interest per year.

n is the number of years invested.

Answer 4

@Henry.Lister .. u confused me

Answer 5

So in this case P=1433.41, i=16.5, n=(1/4).

Answer 6

Or I = 0.165 not 100% sure on that.

Answer 7

There is something called a compound intrest formula which is what you pay on a credit card. You plug in the data, and voila you have a result.

Answer 8

so its 39.23?

Answer 9

Month 1:

I = PRT

I = 1433.41*0.165*(1/12)

I = 19.71

So at the end of the first month, she's paying $19.71 in interest. The rest of the payment is principal (so the principal of the first monthly payment is 500 - 19.71 = 480.29)

So the remaining balance is 1433.41 - 480.29 = 953.12

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Month 1:

I = PRT

I = 953.12*0.165*(1/12)

I = 13.11

So at the end of the second month, she's paying $13.11 in interest. The rest of the payment is principal (so the principal of the second monthly payment is 500 - 13.11 = 486.89)

So the remaining balance is 953.12 - 486.89 = 466.23


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Month 3:

The remaining balance is $466.23, which is less than $500, so she pays no interest this month.


So to sum things up, she paid $19.71 in interest for month 1 and $13.11 for month 2

In total, she paid 19.71 + 13.11 = 32.81 dollars in interest


I may have made an error, but this makes sense to me at least, but I could be off.

Answer 10

anyone ther?

Answer 11

@jim_thompson5910 thank u for ur effort

Answer 12

yup

Answer 13

nayone else want to take a shotat it

Answer 14

np, I'm missing around $6 in interest which is puzzling because I have a calculator which is giving me 32.81 dollars in interest

Answer 15

http://www.calculator.net/credit-card-calculator.html?balance=1433.41&rate=16.50&minimum=500&payoffoption=0&fixedpaymentamount=60&x=94&y=10#

Answer 16

$236.51