Question

** AM I CORRECT?*


Naomi uses a credit card with a 25.9% APR, compounded monthly, to pay for a hotel stay totaling $971.20. She can pay $400 per month on the card. What will the total cost of this purchase be?

$1,009.36

$1,222.74

$1,180.56

$971.20


The answer I got was C

Answer 1

What is apr?

Answer 2

Annual payment rate?

Answer 3

Yes

Answer 4

Annual percentage rate - APR refers to the interest.

Answer 5

Whoops

Answer 6

Well what I did was

971.20*r - 400 = 592.16
592.16*r - 400 = 204.94
204.94*r = 209.37

Then I added that to 971.20

Answer 7

Is the formula P(1+r/100)t used in this question?

Answer 8

What did you use for "r"?

Answer 9

0.259

Answer 10

Rate

Answer 11

Which was 25.9%

Answer 12

Annual rate of interest

Answer 13

Where is the t?

Answer 14

Idk

Answer 15

The tea is in the kitchen, would you like me to get you some?

Answer 16

Bail?

Answer 17

....

Answer 18

Check this site out. It may help you:
http://www.wikihow.com/Calculate-Annual-Percentage-Rate

Answer 19

Good find

Answer 20

:/

Answer 21

I just want someone to check my answer ahhaha

Answer 22

I'd love to help, but I don't know how to do it. Sorry. You may be able to find a calculator online that can check your answer.

Answer 23

Neither can i sorry!

Answer 24

I don't like using online calculators, but thank you guys for trying!

Answer 25

There is a formula for these questions, but I don't know it (i've only seen it a couple of times). You should have it in your notes or your book.

Answer 26

It's not P(1+r/100)t but it's similar, it accounts for the monthly payments.

Answer 27

This is an online class, so there is no book or notes. I used the correct formula I think but I'm just making sure it's right by getting a second opinion :)

Answer 28

What was the formula you used? I'll remember it if i see it... I have a finite math book which has the formula in it.

Answer 29

i = 0.259 -- Annual Interest
j = i/12 -- Monthly Interest
r = 1+j -- Monthly Accumulation Factor

971.20*r - 400 = 592.16
592.16*r - 400 = 204.94
204.94*r = 209.37

Answer 30

1+n **

Answer 31

I'll take my chances and say it's right, I'll tell you if it is or not in a sec!

Answer 32

Poop, it was wrong

Answer 33

Are you sure you're using the right formula? If you post the actual formula, i might recognize it.

Answer 34

And what was your final answer? $1009.36?

Answer 35

Yeah, the answer was probably 1009.36 I probably used the wrong formula.

Answer 36

Well... using your math i got 1009.36.

Answer 37

Add up the payments (i starred them):

971.20*r - ***400*** = 592.16
592.16*r - ***400*** = 204.94
204.94*r = ***209.37***

Answer 38

Those added together give the total amount paid.

Answer 39

The amounts on the right are just remaining balance, except the last one, that's the final payment. The other two payments are the 400s.