Answered

Welcome to Westonci.ca, the place where your questions are answered by a community of knowledgeable contributors. Join our Q&A platform and connect with professionals ready to provide precise answers to your questions in various areas. Our platform offers a seamless experience for finding reliable answers from a network of knowledgeable professionals.

3 parts!!! Suppose that on January 1 you have a balance of $4500 on a credit card whose APR is 12%, 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?Part A: The monthly payment is ?(Do not round until the final answer. Then round to the nearest cont as needed.)

Sagot :

Given,

P=$4500

r=12%

For 1 month the rate is 12/12%=1%

So interest for one month is

[tex]I=\frac{4500\times1\times1}{100}=45[/tex]

a. The monthly payment is:

[tex]\begin{gathered} A=\frac{4500\times0.01\times(1+0.01)^{12}}{(1+0.01)^{12}-1} \\ \Rightarrow A=\frac{50.70}{0.12} \\ \Rightarrow A=422.5 \end{gathered}[/tex]

The monthly payment is $422.5

b. Total payment for a year is:

A=4500+(12x45)=$5040

Total amount paid since January is $5040

c. The percentage of interest is:

[tex]\frac{45\times12}{5040}\times100\%=10.71[/tex]

The percentage interest is 10.71%

Thanks for using our platform. We're always here to provide accurate and up-to-date answers to all your queries. Your visit means a lot to us. Don't hesitate to return for more reliable answers to any questions you may have. Thank you for choosing Westonci.ca as your information source. We look forward to your next visit.