Question

Larson uses his credit card to purchase a new video game system for $519.82. He can pay off up to $225 per month. The card has an annual
rate of 15.4% compounded monthly. How much total interest will he pay?

Answer 1

2,993.80
2,513.69
3,285.64
2,591.95

Answer 2

Larson uses his credit card to purchase a new video game system for $519.82. He can pay off up to $225 per month. The card has an annual
rate of 15.4% compounded monthly. How much total interest will he pay?
_____________________________________________________________________________________________
A = P(1+r/n)^nt
Where A is the final interest
P is the initial principal balance (519.82)
r = rate (15.4%)
t = ?
n = number of times compounded (monthly so 12).
So we need to find time, since he can pay off up to $225 per month, it would take just a little under 2 months to pay off, but lets just say it takes 2 months for the sake of simplicity.
Now we can plug in 2 into the formula. Can you see what you get for A?

Answer 3

What do you mean ?

Answer 4

The choice are
81.39
4.72
11.57
13.94

Answer 5

Why did you give different answer choices then? ...

Answer 6

That was my fault

Answer 7

Does it mention how long it will take for him to pay off the credit card debt? Without that info, I don't think it's possible to answer

Answer 8

It does not

Answer 9

so did your teacher give you any formulas that can help us solve this?

Answer 10

Not at all

Answer 11

Can’t get it?

Answer 12

Wait I'm not thinking. It is possible to solve this without knowing the timeline

First we convert the annual interest rate into the monthly rate. Any ideas how to do this?