Question

Thomas charged $2,400 on his credit card to buy furniture. The interest rate charged by the credit card company is 24.9%. How much will he pay in interest after one month?

Answer 1

$2400.32

A = Pe^(r)(t) - 50

A =2400e^(0.249)(1/12) - 50

Answer 2

If the interest is compounded continuously:
A = Pe^(r)(t) - 50
A =2400e^(0.249)(1/12) - 50 = $2400.32