Question

Problem-work-interest-total

Gabe has a debt on his credit card of
$1569.32. He cannot pay it off right now,
but should be able to in 6 months. The
credit card company charges 10.5%
interest that is compounded monthly.
What will Gabe owe after 6 months?

Answer 1

Answer: Gabe will owe approximately $1690.75 after 6 months.

Explanation:

The dependent variable in this problem is the amount of debt that Gabe owes after 6 months, which is influenced by the independent variable of the interest rate, which is 10.5% compounded monthly.

The equation that can be used to calculate the total amount of debt after 6 months is:

Total debt = Initial debt x (1 + Interest rate)^(Number of compounding periods)

By plugging in the given information, we can calculate the total debt as:

Total debt = $1569.32 x (1 + 0.105/12)^6

Therefore, Gabe will owe approximately $1690.75 after 6 months.