Question
A bank credit card charges interest at the rate of 24% per year, compounded monthly. If a senior in college charges $1,100 to pay for college expenses, and intends to pay it in one year, what will he have to pay? (Round your answer to the nearest cent.)
Answers
Silly and unreasonable question. Who would let a 24% credit card go for a whole year without any payment, and what company would not let you make payments ????
anywhoo...
i = .24/12 = .02
n = 12
amount = 1100(1.02)^12 = $1395.07
anywhoo...
i = .24/12 = .02
n = 12
amount = 1100(1.02)^12 = $1395.07