Question
upstudy study bank question image url

Use PMT \( =\frac{P\left(\frac{r}{n}\right)}{\left[1-\left(1+\frac{r}{n}\right)^{-n t}\right]} \) to determine the regular payment amount, rounded to the nearest dollar. Your credit card has a balance of \( \$ 5500 \) and an annual interest rate of \( 12 \% \). You decide to pay off the balance over three years. If there are no further purchases charged to the card, a. How much must you pay each month? b. How much total interest will you pay? a. The monthly payments are approximately \( \$ 183 \). (Do not round until the final answer. Then round to the nearest dollar as needed.) b. The total interest paid over 3 years is approximately \( \$ \square \) (Round to the nearest dollar as needed.)

Ask by Bowers Warren. in the United States
Mar 14,2025

Upstudy AI Solution

Tutor-Verified Answer

Answer

a. You must pay approximately \$183 each month. b. The total interest paid over 3 years is approximately \$1,088.

Solution

Sign in to Unlock Answers for Free!

A Learning Platform Trusted by Millions of Real Students and Teachers.

star-icon Unlock

Answered by UpStudy AI and reviewed by a Professional Tutor

Extra Insights

To calculate the total interest paid over three years, we need to find the total amount paid and then subtract the initial balance. The monthly payment (PMT) has already been found to be \$183. Over three years, which is 36 months, the total amount paid will be \( 183 \times 36 = 6588 \). Now we can find the total interest paid: Total interest = Total amount paid - Initial balance Total interest = \( 6588 - 5500 = 1088 \). So, the total interest paid over three years is approximately \( \$ 1088 \).

Try Premium now!
Try Premium and ask Thoth AI unlimited math questions now!
Maybe later Go Premium
Study can be a real struggle
Why not UpStudy it?
Select your plan below
Premium

You can enjoy

Start now
  • Step-by-step explanations
  • 24/7 expert live tutors
  • Unlimited number of questions
  • No interruptions
  • Full access to Answer and Solution
  • Full Access to PDF Chat, UpStudy Chat, Browsing Chat
Basic

Totally free but limited

  • Limited Solution
Welcome to UpStudy!
Please sign in to continue the Thoth AI Chat journey
Continue with Email
Or continue with
By clicking “Sign in”, you agree to our Terms of Use & Privacy Policy