Question

Please help me right away, 50 points!!!! And I will be giving brainliest as well

Your parents have a credit card with a balance of $3,387.90 at an interest rate of 14.5% APR. They pay $1,200.00 each month on the due date until the card is paid off. How many months does it take to pay off the card, and what is the total amount including interest?
Be sure to include in your response:
The answer to the original question and
The mathematical steps for solving the problem demonstrating mathematical reasoning.

Answer 1

Okay so to start this problem we will calculate the amount due after the first month.
$1,200 x .145 = 174 <--- This is going to be the applied interest for the first and second payment.
Add 1,200 + 174 = 1374 

Now, going into the second month the total amount left should be 2,187.90 because 3,387.90 - 1,200 = 2,187.90

We are going to have to take 1,200 for the second monthly payment. So now the total left to pay should be $987.90.

Let us calculate the actual amount of the second payment now. The added interest rate is going to be the same as the first month so once again we will pay $1374.00 this month.
The new amount paid = 1374+1374 = $2748.00

So we are going to setting up a new equation for this month since we don't have $1,200 to calculate with.

The new total due is 987.90. 987.90 x .145 = $143.25
So, 987.90 + 143.25 = $1,131.15
We are going to add up all the monthly payments with interest to calculate the total cost.
$2748.00 + 1,131.15 = $3879.15

It takes 3 months to pay off the card.
The total amount paid is $3879.15.

I hope this helped!

Answer 2

Answer:

It will takes 4 months to pay off the card.

The total amount paid is $3,387.90

3,387.90  

Interest rate 14.50%

Monthly payments $1,200

Month    Open Balance.   Payment       Interest Charged          Closing Balance  

1                    3,387.90           1,200                174                                   2,361.90

2                    2,361.90           1,200                174                                   1,335.90              

3                    1,335.90           1,200                174                                    309.90

4                    309.90               309.90      

Step-by-step explanation: