You have a credit card that charges 18% per year interest or 1.5% per month. You buy a TV for $1100 on the credit card, but at the end of the month you only pay $100. You continue to pay $100 the next month. You pay the entire balance in the third month. How much did you pay the third month. How much total interest did you pay over the three months?
897 and 4.5% interest.
To find out how much you paid in the third month, we need to calculate the remaining balance after the first two months.
In the first month, you bought a TV for $1100 and only paid $100. So the remaining balance after the first month is $1100 - $100 = $1000.
In the second month, you paid another $100. So the remaining balance after the second month is $1000 - $100 = $900.
In the third month, you pay off the entire remaining balance. Therefore, the amount you pay in the third month is $900.
To calculate the total interest paid over the three months, we need to calculate the interest charged each month and sum them up.
In the first month, the remaining balance was $1000, and the monthly interest rate is 1.5%. Therefore, the interest charged in the first month is $1000 * (1.5% / 100) = $15.
In the second month, the remaining balance is $900, and the monthly interest rate is still 1.5%. So the interest charged in the second month is $900 * (1.5% / 100) = $13.50.
In the third month, you pay off the entire remaining balance, so there is no interest charged.
Now, let's sum up the interest charges: $15 + $13.50 + $0 = $28.50.
Therefore, the total interest paid over the three months is $28.50.
In conclusion, you paid $900 in the third month, and the total interest paid over the three months was $28.50.