Question

Today, you get your first credit card. It charges 12.49% interest on all purchases and compounds that interest monthly. Within one day you max out the credit limit of $1,200.00. If you pay the monthly accrued interest plus $50.00 towards the initial $1,200 amount every month, how much will you still owe at the end of the first 12 months?

Name: today you get your first credit card it charges 1249 interest on all purchases and compounds that interest monthly within one day you max out the credit limit of 120000 if you pay the monthl 21448
Uploaded: 2022-12-07T04:02:56-08:00
Duration: 2 min 33 s
Channel: Nick Johnson
Description: today you get your first credit card it charges 1249 interest on all purchases and compounds that interest monthly within one day you max out the credit limit of 120000 if you pay the monthl 21448

          Today, you get your first credit card. It charges 12.49%
interest on all purchases and compounds that interest
monthly. Within one day you max out the credit limit of
$1,200.00. If you pay the monthly accrued interest plus $50.00
towards the initial $1,200 amount every month, how much
will you still owe at the end of the first 12 months?

Added by Alejandra P.

Elementary and Intermediate Algebra

Alan S. Tussy, R. David Gustafson 5th Edition

Instant Answer

Solved by Expert Nick Johnson

12/07/2022

Step 1

The annual interest rate is 12.49%, so the monthly interest rate is 12.49% divided by 12 months. Monthly interest rate = 12.49% / 12 = 1.04083% (or 0.0104083 in decimal form). Show more…

Show all steps

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Today, you get your first credit card. It charges 12.49% interest on all purchases and compounds that interest monthly. Within one day you max out the credit limit of $1,200.00. If you pay the monthly accrued interest plus $50.00 towards the initial $1,200 amount every month, how much will you still owe at the end of the first 12 months?