Problema Solution
Nicole used her credit card to buy a 1,255 mattress. Her credit card has an apr of 11.56%, compounded monthly, and the mattress was the only purchase on the card. Nicole paid off the mattress after two and a half years. If the sales tax in Nicole's area is 9.08%, how much interest did Nicole pay in total?
Answer provided by our tutors
1255 *.0908=113.954
1255+113.954=1368.954
1368.954(1+.1156/12)^(2.5*12)=1825.15
1825.15-1368.954=456.20
$456.20 interest paid by Nicole.