(Cash Versus Financing MC)

A truck driver pays for emergency repairs that cost $1,325.76 with a credit card that has an annual rate of 19.95%. If the truck driver pays $120 a month until the balance is paid off, how much interest will have been paid?

A spreadsheet was used to calculate the correct answer. Your answer may vary slightly depending on the technology used.

$93.65
$151.53
$188.16
$161.21

Question

(Cash Versus Financing MC)

A truck driver pays for emergency repairs that cost $1,325.76 with a credit card that has an annual rate of 19.95%. If the truck driver pays $120 a month until the balance is paid off, how much interest will have been paid?

A spreadsheet was used to calculate the correct answer. Your answer may vary slightly depending on the technology used.

$93.65
 $151.53
 $188.16
 $161.21

Aratox · Answer

The total interest paid over the course of paying off the $1,325.76 balance at a 19.95% annual interest rate with $120 monthly payments is $151.53.

So, the correct answer is $151.53