Question

Your credit card balance is 1,200$ after you buy an iPhone X. You decide to take 5 months to pay it off at 21% interest rate. What is your total payment after 5 months?

Answer 1

Total Payment is $1305

Explanation:

simple interest = (principal × rate × time)/100

p = $1200

time = 5 months

rate = 21%

Interest = (1200 × 21 × 5/12)/100

= 12 × 21 × 5/12 = 21 × 5

Interest = $105

Total payment = credit balance + interest

= $1200 + $105

= $1305