Question

you owe $1,000 to a credit card company with 18% interest rate that will be compounded daily assume that there are no late fees and you knew not pay for one year how much will you owe after one year

Answer 1

9514 1404 393

Answer:

$1197.16

Explanation:

The future value is given by ...

FV = P(1 +r/n)^(nt)

for principal P earning annual rate r compounded n times per year for t years

Your balance due will be ...

FV = $1000(1 +0.18/365)^(365·1) ≈ $1197.16

You will owe $1197.16 after 1 year.