Nicole used her credit card to buy a $1,255 mattress. her credit card has an apr of 11.56%, compounded monthly, and the mattress was the only purchase on the card. nicole paid off the mattress after two and a half years. if the sales tax in nicole’s area is 9.08%, how much interest did nicole pay in total? (round all dollar values to the nearest cent.) a. $213.85 b. $456.20 c. $196.10 d. $327.86

b. $456.20 is the answer.

Step-by-step explanation:

The cost of the mattress = $1255

APR of the credit card = 11.56% or 0.1156

Time = 2.5 years

n = 12

Sales tax in Nicole's area = 9.08% or 0.0908

So, sales tax amount =

Total amount becomes(p) = 1255+113.954 =$1368.954

Compound interest formula =

Putting above values in the formula:

= $1823.351

So, interest paid becomes = 1823.351-1368.954 = $454.397 closest to $456.20

Hence, option B is the answer.

step-by-step explanation:

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