A bank credit card charges interest at the rate of 20% per year, compounded monthly. If a senior in college charges $1,300 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.)

Answer 1

0.20 / 12 = 0.01666666 per month
1300 * (1.01666666)^12
= 1300 * 1.219391
= 1585.21