Question

Help please?

Aubrey uses her credit card to buy some clothes for $552.86. She can pay up to $195 on the credit card each month. What is the total cost of her purchase if the APR on the credit card is 27.3% compounded monthly?

$552.86

$578.05

$703.79

$740.85

Answer 1

@agent0smith

Answer 2

She makes the purchase for $552.86.

After one month, she owes $552.86 + the interest of that month.
One month's interest is 27.3%/12 on the balance, so $552.86 * 0.273/12 = $12.58
At the end of the first month, she owes $552.86 + $12.58 = $565.44.
She pays $195. Now she owes $565.44 - $195 = $370.44

After the second month, she owes $370.44 + interst of that month.
One month's interest is 27.3%/12 on the balance, so $370.44 * 0.273/12 = $8.43
At the end of the second month, she owes $370.44 + $8.43 = $378.87
She pays $195. Now she owes $378.87 - $195 = $183.87

After the third month, she owes $183.87 + interest of that month.
One month's interest is 27.3%/12, so $183.87 * 0.273/12 = $4.18
At the end of the third month, she owes $183.87 + $4.18 = $188.05
She pays $188.05 and pays it off.

The total amount she paid was $195 + $195 + $188.05 = $578.05

(this is the correct one lol)

Answer 3

thank you :) how about this one?

Taylor has a credit card with an interest rate of 24.5% compounded monthly that she must pay off in seven years. If her balance on the credit card is $2,345, what must her monthly payment be?

$27.92

$58.61

$222.31

$732.52

Answer 4

im answering in the other question