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Natalie uses a credit card with a 23.6% APR, compounded monthly, to pay for a hotel stay totaling $748.12. She can pay $300 per month on the card. What will the total cost of this purchase be?

A. $748.12
B. $775.31
C. $923.43
D. $924.68

User Kimisha
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1 Answer

3 votes

Final answer:

The total cost of Natalie's hotel stay paid using a credit card with a 23.6% APR, compounded monthly, and a $300 monthly payment will be $900. C. $923.43 is correct answer.

Step-by-step explanation:

To calculate the total cost of Natalie's hotel stay, we need to find the total number of months she will need to pay off the credit card debt. She can pay $300 per month, so the equation becomes:

$748.12 = $300 imes x

Where x is the number of months. To isolate x, divide both sides of the equation by $300:

x = $748.12 / $300

x = 2.49373

Since we can't have a fraction of a month, we need to round up to the nearest whole number. Therefore, Natalie will need to make 3 payments. Now, let's calculate the total cost of the purchase. Natalie will pay $300 for 3 months, so:

Total cost = $300 imes 3 = $900

Therefore, the total cost of this purchase will be $900.

User Joran Beasley
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