Answered

IDNLearn.com: Where your questions meet expert advice and community insights. Our platform offers comprehensive and accurate responses to help you make informed decisions on any topic.

a bank credit card charges interest at the rate of 24% per year, compounded monthly. if a senior in college charges $1,900 to pay for college expenses, and intends to pay it in one year, what will he have to pay? (round your answer to the nearest cent.)

Sagot :

QWpurpleidn

If the expenses are compounded monthly and the credit expenses are to be paid in a year then the amount that will be paid will be $2,409

Compound interest, also known as interest on principal and interest, is the practice of adding interest to the principal amount of a loan or deposit. It is frequently compounded monthly, which means that each month the interest is added back to the principal

Interest Rate (r) = 24% = 0.24

Principle Amount (P) = $1,900

Time to pay college expenses (t) = 1 year

Number of times that interest will be added in a year (n) = 12

We will use the following formula to compute the amount to be paid:

[tex]A = P (1 + \frac{r}{n})^{nt}[/tex]

A = 1900 * [1 + (0.24 / 12)]¹²

A = 1900 * [1 + (0.02)]¹²

A = 1900 * (1.02)¹²

A = 1900 * 1.268 = 2409.2

Therefore, the Amount to be paid = $2,409

To know more about Compound Interest, refer to this link:

https://brainly.com/question/14295570

#SPJ4

We are happy to have you as part of our community. Keep asking, answering, and sharing your insights. Together, we can create a valuable knowledge resource. IDNLearn.com is committed to your satisfaction. Thank you for visiting, and see you next time for more helpful answers.