Question

You have a credit card with a balance of $1,367 90 at a 9.5% APR. You pay $400.00 each month on the due date until the card is paid off. How many months does it take to pay off the card, and what is the total amount paid including interest?

**Teacher is asking me to use I=PRT. Thanks a bunch!

Answer 1

Explanation:

to work the answer out you find out what one percent would be for the APR, which you can then find out what half of that one percent would be to give you .5%, then you take the one percent and times it by 9 and add on the .5% to get you the total.

This will get you the interest and you add it to the original amount of $1,367.90 to get the full amount needed to pay back

You then divide by 400 to get you a number with a decimal and then you round up, this will get you the interest and the answer

Not sure about the I=PRT but that's how we learnt it