Asked by Dee

A bank credit card charges interest at the rate of 23% per year, compounded monthly. If a senior in college charges $1,700 to pay for college expenses, and intends to pay it in one year, what will she have to pay?
Answered by Reiny
monthly rate = .23/12 = .0191666..
Since it is a credit card, I am assuming that you want equal monthly payments

let that payment be P
P( 1 - 1.01916666..^-12)/.019666.. = 1700
p(10.6296677) = 1700
P = $159.93
Answered by Dee
I think the question is asking what she would pay at the end of the year. I tried $159.93 and it was not correct.
Answered by Bro C'mon
your finding the interest... but your looking for that in the year to pay off her credit card debt it would cost 2,091
Answered by Anonymous
2,134.97
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