Question

If you have a balance of 1,000 on your edit card and the interest rate is 17 3/4% a year in order to pay off the $100 in 5 years

Answer 1

$2,263.63

Explanation:

You start with "if" but don't end with what your goal is. I will assume that you want to know how much you'll have to pay after 5 years to pay off this $1,000 loan.

Use the compound amount formula A = P(1 + r)^5. Replacing P with $1,000, r with 0.1775 and t with 5 years, we get the payoff balance

A = $1,000(1 + 0.1775)^5 = $2,263.63