Question

Andrew has a balance of $6,000 on his credit card with an annual interest rate of 12%. To pay off the $6,000 in three years, Andrew will have to make a minimum payment of $199.29 per month. How much will Andrew pay in interest over the three year period?

Answer 1

$1,174.44

Explanation:

- Three year period will have 36 payments, then the total payment is $7,174.44

- In which $6,000 is the balance of credit card at beginning

- The total interest paid over the 03 years is $1,174.44 = $7,174.44 - $6,000