Nash uses a credit card with a 17.8% APR, compounded monthly, to pay for a cruise totaling $1,789.17. He can pay $650 per month on the card. What will the total cost of this purchase be?
It will take Nash 2.83 months to pay off the entire balance of his Credit Card @$650 per month @ 17.8% APR compounded monthly. Therefore, his total cost will be:2.83 x $650 =$1,840.24, or $51.07 in interest on top his balance of $1,789.17.
