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2 April, 14:06

Larry uses his credit card to purchase a new video game system for $445.07 he can pay off off up to $200 per month the card has an annual rate of 13.6% compounded monthly how much total interest will he pay

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  1. 2 April, 14:34
    0
    It will take 3 months to payoff the balance. The total interest is $ 8.26.
  2. 2 April, 14:35
    0
    Answer: $119.26

    Step-by-step explanation:

    since the annual interest rate is compounded monthly the annual interest rate will be 13.6%/12 = 17/15%

    first month payment:

    $445.07 x 17/15% - $200 = $304.41 is the balance

    second month payment:

    $304.41 x 17/15% - $200 = $145.00 is the balance

    thus

    $145.00 x 17/15% = $164.33

    hence total amount paid = $200 + $200 + $164.33 = $564.33

    interest = total amount paid - cost = $564.33 - $445.07 = $119.26
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