Question

Felipe transferred a balance of $3700 to a new credit card at the beginning of the year. The card offered an introductory APR of 5.9% for the first 4 months and a standard APR of 17.2% thereafter. If the card compounds interest monthly, which of these expressions represents Felipe's balance at the end of the year? (Assume that Felipe will make no payments or new purchases during the year, and ignore any possible late payment fees.) A. ($3700) 1+ B. (13700(1-0,059) (+017) 1700)/1.09.0172 (370)(1-0,052) (1.0172) C. (33700872099) 2012) D. ($3700) 1+

Answer 1

The expression that represents Felipe's balance at the end of the year is ($3700) * (1+0.059)^4 * 1.172. To calculate the balance at the end of the year, we need to consider the introductory APR of 5.9% for the first 4 months and the standard APR of 17.2% for the remaining 8 months.

Step-by-step explanation:

The expression that represents Felipe's balance at the end of the year is ($3700) * (1+0.059)^4 * 1.172.

To calculate the balance at the end of the year, we need to consider the introductory APR of 5.9% for the first 4 months and the standard APR of 17.2% for the remaining 8 months.

First, we calculate the balance after the introductory period: ($3700) * (1+0.059)^4. This calculates the balance after 4 months with compound interest.

Then, we calculate the balance for the remaining 8 months with the standard APR: previous balance * 1.172, where 1.172 is ((1+0.172)/12)^8.

Adding the two balances together gives us the final balance at the end of the year.