Question

Damian has a balance of $10,200 on his credit card. He threw the card away so he can never use it again. He has 3 1/2 years to pay off the balance. The interest rate on his card is 21%. At the end of the 3 1/2 years, how much interest has he paid?

Answer 1

the interest that have to paid is $9,676.91

Explanation:

The computation of the interest to be paid is as follows:

= Future value - initial value

= $10,200 × (1 + 0.21)^3.5 - $10,200

= $19,876.91 - $10,200

= $9,676.91

Hence, the interest that have to paid is $9,676.91

We simply applied the above formula so that the correct value could come

And, the same is to be considered