Question

Rachel is purchasing a new camera that costs $1000. Rachel uses a credit card that has an APR of 16.77%. How much will she pay in total to pay off the purchase if she makes monthly payments of $40 ? Round the number of monthly payments up to the nearest whole number. Round your final answer to the nearest whole number, if necessary.

Answer 1

Rachel will pay a total of $1040 to pay off the camera purchase.

Step-by-step explanation:

To find out how much Rachel will pay in total to pay off the camera purchase, we need to calculate the number of monthly payments she will make. Since the purchase price is $1000 and she makes monthly payments of $40, we can divide the purchase price by the monthly payment amount to find the number of months: $1000 ÷ $40 = 25. Since we need to round up to the nearest whole number for the number of monthly payments, Rachel will make a total of 26 payments.

Next, we will calculate the total amount Rachel will pay by multiplying the number of monthly payments by the monthly payment amount: 26 x $40 = $1040. Therefore, Rachel will pay a total of $1040 to pay off the camera purchase.

Answer 2

Rachel will make 26 monthly payments of $40 to pay off the $1000 camera purchase, resulting in a total payment of $1040.

Step-by-step explanation:

To calculate how much Rachel will pay in total to pay off the purchase, we need to determine the number of monthly payments she will make. She makes monthly payments of $40, so we divide the total cost of the camera ($1000) by the monthly payment ($40) to get the number of payments. In this case, 1000 / 40 = 25. Since we need to round up to the nearest whole number, Rachel will make 26 monthly payments.

Next, we calculate the total amount paid by multiplying the number of payments (26) by the monthly payment ($40). So, 26 x 40 = $1040. This is the total amount Rachel will pay to pay off the purchase.