you got a new credit card with an interest rate of 18% compounded monthly and no minimum payment. you go on a shopping spree and

Question

3 years ago

15

you got a new credit card with an interest rate of 18% compounded monthly and no minimum payment. you go on a shopping spree and

purchase $10,000 worth of clothes and shoes. If you wait 6 months to pay the bill, how much more will you owe than if you had paid the bill immediately?

Mathematics

1 answer:

just olya [345] · Answer 1 · 2021-12-25T03:58:51+03:00

just olya [345]3 years ago

7 0

The total amount owed after 6 months will be found using the formula:
FV=P(1+r/100*n)^n
P=principle=$10000
r=rate=18%
n=terms=0.5

FV=10000(1+18/2*100)^0.5
FV=$10,440.30651
Thus the amount owed will be $10440.30651