John wants to buy a stereo for £650 and pay for it using a credit card that has an Annual Percentage Rate of 19.8%. If John pays the minimum monthly payment of £21.57 it will take 42 months to pay it off.
(a) What is the total amount John will pay for the stereo?
(b)What is John’s total cost of using credit?
(What's the difference between the two?)
