Milton opens a store credit card when he purchases appliances for his kitchen. the interest rate is 17.45%. he charges $3,740 to the card, and can pay $1,350 per month. what will the total cost of his purchase be?

Answer-

The total cost of his purchase will be $3,846.34

Solution-

Here, the annual interest rate is 17.45%.

So monthly interest rate will be,

With a purchase of $3,740, the amount will be after one month,

Then she makes a payment of $1350, so the balance at the end of month 1 is

Now she has to pay with $2444.37 as principal amount, the amount will be after one month,

Then she again makes a payment of $1350, so the balance at the end of month 2 is

Final month, she has to pay with $1129.91 as principal amount, the amount will be,

So the total cost, including interest, would be the sum of the three payments,

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