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4 April, 19:18

Kelly uses her credit card to purchase a new television for $489.25. She can pay off up to $225 per month. The card has an annual rate of 21.7% compounded monthly. How much will she pay in interest? $5.58 $14.75 $17.79 $54.00

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  1. 4 April, 19:26
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    The original price of the television set is

    $489.25

    She can pay up to

    $225 per month

    The annual rate is

    21.7% or 1.81% (effective per month)

    The interest she must pay is

    489.25 / 225 (1 + 0.0181) = $17.79
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