+57 Suppose you buy an iPad for $500 with a credit card that charges 11% intrest, compounded monthly. If you make, how long does it take you to pay off everything you owe? How much did you end up paying in total? What will be the amount owed and paid for each month?
In cases of this type, you have to know at least 3 of 4 variables, or 4 of 5 variables to calculate the unknown. Since, you only gave 2 out of 4, will have to assume the third. In your case, will have to assume a term, n, required to pay off the loan completely.
1- Will assume a one year term or 12 months. In this case the monthly payment will be $44.19 principal plus interest. Then, over 12-month period you will pay $44.19 x 12 =$530.28 in total. So obviously:$530.28 - $500 =$30.28 will be interest on your loan over a period of 1 year.
