contestada

You receive a credit card application from Shady Banks Savings and Loan offering an introductory rate of .5 percent per year, compounded monthly for the first six months, increasing thereafter to 17.9 percent compounded monthly. Assume you transfer the $6,900 balance from your existing credit card and make no subsequent payments. How much interest will you owe at the end of the first year? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Respuesta :

TomShelby

Answer:

FV $6,955.86

Explanation:

.5% per year compounded monthly during six month

then

19% per year compounded monthly during six month

[tex]Principal \: (1 + rate/n)^{time*n}\: (1 + rate/n)^{time*n} } = FV[/tex]

We have to use the 0.5 rate for the first six month, and then the 19% ate for the following six month

[tex]Principal \: (1 + 0.005/12)^{(6/12)*12}\: (1 + .19/12)^{(6/12)*12} } = FV[/tex]

FV 6,955.859156

FV $6,955.86

Otras preguntas