Peyton has a credit card with an annual rate of 24.7% compounded monthly. She used the credit card to purchase cleaning supplies in the amount of $189.56. She can pay up to $72 on the credit card each month. How much total interest will she pay?

Question

anonymous · Answer

rate of interest = 24.7/12 % compounded monthly

1st month :
Peyton pays $72.
Remaining amount= 189.56-72 = $ 117.56
interest charged = 117.56*(24.7/12)*1/100 =$ 2.42
Now she owes 117.56 + 2.42 = $ 119.98

2nd month:
Peyton pays $72
Remaining amount = 119.98 -72 = $ 47.98
interest charged = 47.98*(24.7/12)*1/100 =$ 0.99
Now she owes $ 48.97

3rd Month:
She pays $48.97 and now she owes nothing.

TOTAL INTEREST PAID = $ (72*2 + 48.97) - 189.56 
                                  = $ 3.41

anonymous · Answer

Wrong