Your credit card 18% compound interest per month. You have $500 on your credit card. After 5 years how much do you have owe total ?

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Answer 1 · 2018-02-28T13:58:46

#$1221.61#

You need to use the compound interest formula:

#A = P(1+r)^n#

Plugging in the values,

#A = 500(1+0.018/12)^(5*12)#

We need to adjust the rate and divide the #n# by #12# so that we are counting in terms of months.

#=>A = 500(1.015)^60#

#=>A = 1221.61#