= Exe
A credit card company charges 2% interest
per month on accounts not paid in previous
months. If Norman pays $50 of his August
account of $990, find the interest charges
which will be added to his September
account.
some one please please help me to solve this step by step. I will mark your answer as brainliest.
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Answer:
The formula for amount owed at the end of n = 12 months, if the interest rate is r = 2% = 0.02 per month, compounded monthly, is
A = P(1 + r)^n, where P is the principal: P = $1,000.
A = 1000(1+0.02)^12 = 1,268.24 (rounded to the nearest cent).
The amount owed is $1,268.24, so the interest is the difference between amount owed and the principal:
I = A - P = $1,268.24 - $1,000 = $268.24.
The person would have to pay $268.24 in interest.
Step-by-step explanation:
Hope it will help
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