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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…

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…
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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

User Alan Araya
by
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1 Answer

2 votes
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
User Alon Minski
by
7.6k points
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