Respuesta :
Answer:
Ans. Since the annual rate is not compunded (for example, compounded monthly) you will have to pay in interest $27.41, and the total payment is $1,061.41
Step-by-step explanation:
Hi, since the balance is 1 month overdue, it means that you owe 2 months of interest to this obligation, but before we start finding the interest of your credit card, first let´s find the effective monthly equivalent rate for that 17% annual interest rate.
The formula is as follows.
[tex]r(monthly)=(1+r(annual))^{\frac{1}{12} }-1[/tex]
Therefore
[tex]r(monthly)=(1+0.17)^{\frac{1}{12} }-1 =0.01317[/tex]
So your monthly interest rate is 1.317%. Now let´s find the amount of interests that you have to pay for 2 months. This is the formula.
[tex]Interest=Present Value(1+r(monthly))^{n} )-PresentValue[/tex]
Where "n" is the period of time in months that you owe to the financial institution. The result of that is:
[tex]Interest=1,034(1+0.01317)^{2} -1,034=24.41[/tex]
This way, interest are = $27.41 and the total amount that you will have to pay is:
[tex]Payment=Present Value+Interest=1,034+27.41=1,061.41[/tex]
Best of luck.
