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14 April, 21:44

Michael opens a store credit card when he purchases a new computer. The interest rate is 25.45%. He charges $2,380 to the card, and can pay $850 per month. What will the total cost of his purchase be?

$2,380.00

$2,480.20

$2,985.71

$3,160.20

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  1. 14 April, 23:12
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    The answer is C.

    2,380 x 1.2545 = $2,985,71

    (the reason you use 1.2545 is to skip the step of having add /.2545 to 2380

    This isn't an accurate question however, because credit cards use compound interest.
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