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Subject:
Credit card charges compounded monthly
Category: Miscellaneous Asked by: fredewq-ga List Price: $7.50 |
Posted:
02 Nov 2002 17:01 PST
Expires: 02 Dec 2002 17:01 PST Question ID: 96886 |
My credit card charges 21.3% APR, compounded monthly, on unpaid balances. If my current balance is $756 and I don't make any payments for 6 months, how much will I owe? (Hint: Use the compound interest formula to write the balance of your credit card as a function of time.) Please show work. Thanks |
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Subject:
Re: Credit card charges compounded monthly
Answered By: haversian-ga on 02 Nov 2002 17:24 PST Rated: |
F(t) = P(1 + i/n)^(nt) (i is the yearly interest rate, n is the number of compoundings per year (12 in the case of monthly compounded interest), and t is the time in years) In your case, i = .213, n = 12, and t = 0.5 756 * (1 + .213/12)^(12*0.5) = $840.1725 |
fredewq-ga
rated this answer:
For your information I am a disabled student and this is my last term in mathmatics. I had surgery 2 weeks before school started and I have found it very difficult to to keep up. By the way my GPA is 3.85! |
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