Question

You have a credit card with an initial balance of $3,168.00 and an interest rate of 12.75% apr. if you make no payments on the card for three months, how much is your balance by the end of the third month? $3,860.43 $3,270.06 $3,201.66 $3,571.92

Answer 1

A=p(1+i/m)^mn
P=3168
i=0.1275
M=12
n=3/12
A=3,168×(1+0.1275÷12)^(12*3/12)
A=3,270.06

Answer 2

Your balance by the end of the third month is $3270.06

Explanation:

We are given

P=$3168

`r=(0.1275)/(12) =0.010625`

n=3

now, we can use formula

`A=P(1+r)^n`

now, we can plug values

`A=3168(1+0.010625)^3`

`A=3270.06`