Question
Asked Feb 7, 2020
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Ken wants a $1000 TV/sound system. He can't afford that amount so he uses his credit card with 20% annual interest. If he only pays interest each month and that credit card debt about how much will he pay in interest in 4 years?

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Expert Answer

Step 1

First of all, consider the SI formula for the calculation of the interest monthly.

Principal amount = $ 1000

Rate of interest = 20%

Time = 4 years

Algebra homework question answer, step 1, image 1

Step 2

Now, calculate the rate of interest and time for the monthly payment of the interest.

Divide the rate of interest by 12 to calculate the rate of interest monthly.

Multiply the time by 12 to calculate the time in months.

Algebra homework question answer, step 2, image 1

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Algebra

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