## Andrew has a balance of $6,000 on his credit card with an annual interest rate of 12%. To pay off the $6,000 in three years, Andrew will ha

Question

Andrew has a balance of $6,000 on his credit card with an annual interest rate of 12%. To pay off the $6,000 in three years, Andrew will have to make a minimum payment of $199.29 per month. How much will Andrew pay in interest over the three year period?

A) $988.20

B) $1,174.44

C) $1,871.94

D) $7,174.44

## Answers ( No )

3 years is 36 months

36 * 199.29 =7174.44

this is the amount he pays in 3 years

payment – principal = interest

174.44-6000=1174.44

this is the amount of interest

Choice B

Answer: well in three years theres 36 months (12 + 12 + 12 = 36)so we’ll have to multiply it by the minimum payment andrew will have to make a month :

$199.29 x 36 = 7174.44 (amount in three years)then were going to follow the formula : P – P = I ( PAYMENT – PRINCIPLE = INTEREST)

$174.44 – $6000 = 1174.44the answer is B) $ 1,174.44

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