Final answer:
To find the total amount paid for new brakes on a credit card with an annual rate of 24.5%, we must consider the monthly interest accrued as the balance is paid down by $100 each month. The final amount will be more than $756.25, the original cost, due to interest added over the time it takes to pay off the entire balance.
Step-by-step explanation:
To determine the total amount paid for new brakes costing $756.25 with a credit card that has an annual rate of 24.5%, we need to account for the interest accrued over the period it takes to pay off the balance. Assuming the car owner pays $100 a month, the balance will decrease each month, but interest will be added to the remaining balance each month, which complicates the calculation. A spreadsheet can be employed to manage the variable balance and to apply the monthly interest rate, which is the annual rate divided by 12. As payments are made, the principal decreases, resulting in lesser interest being accrued each month.
Given the complexity of the calculation, involving compound interest, the exact total amount paid will depend on the timing of the monthly payments and how the credit card company applies the payments. Without performing the exact calculations with the given payment plan, it's not possible to state a precise total amount paid. However, we can affirm that it will be more than $756.25 due to the interest.