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sergejj [24]
4 years ago
11

Suppose James has a credit card with a balance of 4289 . Each month the credit card company charges 5% interest. If James pays o

ff any new purchases that he makes each month without paying off the old balance or its interest , what will be the balance on his credit card one year from now?
Mathematics
1 answer:
topjm [15]4 years ago
5 0

Answer:

<h2>4076.56</h2>

Step-by-step explanation:

First we need to calculate the James monthly charges on his balance of 4289.

Using the simple interest formula;

Simple Interest = Principal * Rate * Time/100

Principal = 4289

Rate = 5%

Time = 1 month = 1/12 year

Simple interest = 4289*5*1/12*100

Simple interest = 21,445/1200

Simple interest = 17.87

<u>If monthly charge is 17.87, yearly charge will be 12 * 17.87 = </u><u>214.44</u>

The balance on his credit card one year from now = Principal - Interest

= 4289 - 214.44

= 4076.56

The balance on his credit card one year from now will be 4076.56

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