Question

Michael opens a store credit card when he purchases a new computer. The interest rate is 25.45%. He charges $2,380 to the card, and can pay $850 per month. What will the total cost of his purchase be?

$2,380.00

$2,480.20

$2,985.71

$3,160.20

Answer 1

the answer is C.

2,380 x 1.2545 = $2,985,71

(the reason you use 1.2545 is to skip the step of having add /.2545 to 2380

This isn't an accurate question however, because credit cards use compound interest.

Answer 2

the real answer is b 2480.20