Question

Michelle uses a credit card with a 23.2% APR compounded monthly to pay for car repairs totaling $790.59. She can pay $330 per month on the card. What will the total cost of this purchase be?

$974.01

$790.59

$818.07

$948.66

Answer 1

I found a formula that might help you... A=P(1+r/n)^nt
P = principal amount (the initial amount you borrow or deposit)
r = annual rate of interest (as a decimal)
t = number of years the amount is deposited or borrowed for.
A = amount of money accumulated after n years, including interest.
n = number of times the interest is compounded per year

oh by the way I think this question should be moved to a different section. Perhaps mathematics.

Answer 2

trying to find "t" eh...\[B_n=B_ok^{12*t}-P(\frac{1-k^{12*t}}{1-k})\]
\[0=B_ok^{12*t}-P(\frac{1-k^{12*t}}{1-k})\]
\[B_ok^{12*t}=P(\frac{1-k^{12*t}}{1-k})\]
\[\frac{B_o(1-k)}{P}k^{12*t}=1-k^{12*t}\]
\[\frac{B_o(1-k)}{P}=k^{-12*t}-1\]
\[log\left(\frac{B_o(1-k)+P}{P}\right)=-12*t~log(k)\]
\[\frac{-1}{12log(k)}log\left(\frac{B_o(1-k)+P}{P}\right)=t\]
maybe

Answer 3

bah .... need to see if i missed the algebra along the way

Answer 4

the wolfs being a pain .....

Answer 5

when i run it with an excel setup; we get 2 payments + 158.07 to finish it

790.59
+330.00
+330.00
+158.07
--------
1608.66

Answer 6

lol, and when i dont charge double ... we get 818

Answer 7

790.59(1.0193) - 330.00 = 475.87
475.87(1.0193) - 330.00 = 155.07
155.07(1.0193) - 158.07 = 0