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Crank
3 years ago
11

Cameron has a balance of 10,200 on his credit card. He threw the card away so he can never use it again. He has 3 1/2 years to p

ay off the balance. The interest rate on his card is 21%. At the end of the 3 1/2 years how much in interest alone will Cameron have paid
Mathematics
1 answer:
kenny6666 [7]3 years ago
6 0

Answer:

Cameron would have to pay $9,676.91 in interest alone.

Step-by-step explanation:

Hi, all we have to do is use the following formula to find the future value of this amount.

FutureValue=PresentValue(1+r)^t

where;

Present value= 10,200

r= 0.21

t= 3.5

So, everything should look as follows

FutureValue=10,200(1.21)^{3.5} =19,876.91

But that is the future value, in order to find the amount of interest expences Cameron would have to pay, we do as follows.

Interest=Future Value-InitialValue=19,876.91-10,200=9,676.91

So, $9,676.91 is how much in interest alone will Cameron have paid.

Best of luck.

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