Can someone help and workout the problem with me?

Katherine uses her credit card to purchase a new television for $709.15. She can pay off up to $350 per month. The card has an annual rate of 25.7% compounded monthly. How much will she pay in interest?

$23.90

$28.88

$8.05

$33.05

Question

Can someone help and workout the problem with me?

Katherine uses her credit card to purchase a new television for $709.15. She can pay off up to $350 per month. The card has an annual rate of 25.7% compounded monthly. How much will she pay in interest?

 $23.90

 $28.88

 $8.05

 $33.05

anonymous · Answer

(709.15 - 350)(0.257/12) = x = first month's interest

(709.15 - 350(2) + x)(0.257/12) = y = second month's interest

Add those 2 (x and y) and you'll get your answer.

anonymous · Answer

After paying off 350, she will have a balance of 709.15 - 350 on which to pay interest.  That gets added to the next month's balance after subtracting another 350.  You pay interest on that for the second month.

anonymous · Answer

All good now, @NaCl ?

anonymous · Answer

:D

anonymous · Answer

So, answer "c".  good luck to you!

anonymous · Answer

@tcarroll010 Thank you soo much :D

anonymous · Answer

uw!