Question

You have just graduated from college and purchased a car for $6000. Your credit limit is $24,000. Assume that you make no payments and purchase nothing more and that there are no other fees. The monthly interest rate is 14%. Use the table feature on your graphing calculator to determine how much you will owe after 3 months.. a. $9075.54 c. $35,557.06 b. $36,302.15 d. $8889.26 Please select the best answer from the choices provided

Answer 1

At the end of each month, the balance is 1.14 times what it was at the beginning. So, after 3 months, the balance is 1.14³ = 1.481544 times the original charge.
$6000 × 1.481544 ≈ $8889.26

The appropriate selection is
d. $8889.26