Question

Jake accumulated $8,000 in credit card debt. if the interest rate is 20% per year​

Answer 1

Answer:

8,000 x .02 = 1,600

Step-by-step explanation:

Convert the percentage by dividing 20% by 100 to get 0.2,

Then multiply by 8,000 to get your answer.

Answer 2

Answer:

$14,366.85

Step-by-step explanation:

Identify the values of each variable in the formulas. Remember to express the percent as a decimal.

A=?

P=$8,000

r=0.2

t=3

For quarterly compounding, n=4. There are 4 quarters in a year.

A=P(1+rn)nt

Substitute the values in the formula.

A=8,000(1+0.24)4⋅3

Compute the amount. Be careful to consider the order of operations as you enter the expression into your calculator.

A=$14,366.85