Question

Suppose that on January 1 you have a balance of $2700 on a credit card whose APR is 14​%,

which you want to pay off in 1 year. Assume that you make no additional charges to the card after January 1.

a. Calculate your monthly payments.

b. When the card is paid​ off, how much will you have paid since January​ 1?

c. What percentage of your total payment from part​ (b) is​ interest?

a. The monthly payment is

??

(Do not round until the final answer. Then round to the nearest cent as​ needed.)

b. The total paid since January 1 is ?

​(Use the answer from part​ (a) to find this answer. Round to the nearest cent as​ needed.)

c. The percentage of the total paid that is interest is ?

​(Use the answer from part​ (b) to find this answer. Round to one decimal place as​ needed.)

Answer 1

L=2700

r=14%= 0.14

t=1 year

n=12 for monthly payment

.

........................monthly payment

.

.

.

.

.

  The total paid since January 1 is given by

..............total paid

.

.

.

.

total interest is given by

.

total interest in percentage is given by

.............total interest paid in percentage