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.

ANSWER Questions BELOW:

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