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Brums [2.3K]
2 years ago
12

A typical credit card company charges 18% annual interest,

Mathematics
1 answer:
AnnZ [28]2 years ago
3 0

Answer:

$1,519

Step-by-step explanation:

Given that :

Balance = principal = $520

Time (t) = 6 years

Annual. Interest rate (r) = 18% = 0.18

Using the compound interest formula:

A = P(1 + r/n)^nt

n = number of times interest is applied per period ; A = final amount

Since interest is compounded monthly, n = 12

A = 520(1 + 0.18/12)^(12 * 6)

A = 520(1 + 0.015)^72

A = 520(1.015)^72

A = 520(2.9211579)

A = 1519.0021

Hence, final amount = $1519

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