## 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

0

1. 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

2. 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 = 1174.44

the answer is B) \$ 1,174.44

~serenity bella