Math

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Determine the total amount of interest you will pay over the next 3 months on a credit balance of $725 if your credit card has an annual interest rate of 18% and you make monthly payments of 10% of the amount due, rounded to the nearest dollar.

  • Math -

    month 1:
    interest due = 725(.015) = 10.875
    balance owing =735.875
    payment made = 73.58
    reduction in balance = 73.58 - 10.875 =62.71
    balance at end of month 1 = 662.29

    month 2
    interest due = 662.29(.015) = 9.93
    balance owing = 672.22
    payment made = 67.22
    reduction in balance = 67.22-9.93 = 57.29
    balance at end of month 2 = 614.93

    month 3
    (repeat above steps)

    add up the interest for the three months.

    check my arithmetic

  • Math -

    whats the answer

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