Christi has a credit card balance of $4,563. The interest rate on the card is 16.99%. She wants to pay the card off in 2 years. What is the total amount that she will pay back if she pays it off in two years?
To calculate the total amount Christi will pay back after 2 years, we need to consider the interest that will accumulate over that time period.
First, we need to find out how much interest Christi will pay each month. The interest rate is 16.99%, which is equivalent to 0.1699 in decimal form.
The interest for a month can be calculated as follows: $4,563 * 0.1699 = $774.07
So, each month Christi will pay $774.07 in interest.
Since Christi wants to pay off the card in 2 years, she will make a total of 24 monthly payments over that time period.
The total amount she will pay back in 2 years can be calculated as follows: $4,563 + ($774.07 * 24) = $23,625.68
Therefore, Christi will pay back a total amount of $23,625.68 if she pays off her credit card balance in 2 years.