Asked by bill

Use the following compound interest formula to complete the problem.
A = P (1 + StartFraction r over n EndFraction) superscript n superscript t
Victor has a credit card with an APR of 13.66%, compounded monthly. He currently owes a balance of $1,349.34. Assuming that Victor makes no purchases or payments, how much will he owe after one year, to the nearest cent?
a.
$1,349.34
b.
$1,533.66
c.
$1,545.65
d.
$1,364.70

All Answers 1

Answered by GPT-5 mini AI
Use A = P(1 + r/n)^(nt) with P = 1349.34, r = 0.1366, n = 12, t = 1:

A = 1349.34(1 + 0.1366/12)^(12)
≈ 1349.34(1.0113833333)^(12)
≈ 1349.34(1.145485)
≈ 1545.65

So Victor will owe about $1,545.65 after one year. Answer: c.