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sergejj [24]
3 years ago
14

A consumer charges P dollars on a credit card at an annual interest rate of 26%,

Mathematics
1 answer:
Bas_tet [7]3 years ago
7 0

Answer:

the original amount is $1,642

Step-by-step explanation:

The computation of the original amount is shown below:

As we know that

Future value = Present value × (1 + rate of interest)^number of years

So,

Present value = Future value ÷ (1 + rate of interest)^number of years

= $3,024.56 ÷ (1 + 0.26 ÷ 2)^5

= $1,642

Hence, the original amount is $1,642

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