Question

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?

Answer 1

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

Answer 2

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.

Answer 3

your finding the interest... but your looking for that in the year to pay off her credit card debt it would cost 2,091

Answer 4

2,134.97