350*[.28/12/1-(1+.28/12)^-6]
P=$63.19
63.19x6=279.14-350=$29.14
The answer is a.
Answer:
$29.14
Step-by-step explanation:
Given : His credit card offers cash advances up to $500.00 at an interest rate of 28%.
To find: If the television costs $350.00 and Robby plans to pay the balance of in 6 months, how much extra will he pay in interest to purchase the television?
Solution:
Monthly payment = [tex]m=\frac{P \times i}{1-(1+i)^{-n}}[/tex]
P = $350
n =6
rate of interest = 20% =0.28
So, rate of interest per month = i = 0.28/12
Substituting the values
[tex]m=\frac{350 \times \frac{0.28}{12}}{1-(1+\frac{0.28}{12})^{-6}}[/tex]
[tex]m=63.1887591933[/tex]
So, he pays per month = $63.1887591933
So, he pays with interest for 6 months = [tex]63.1887591933 \times 6[/tex]
= [tex] 379.13255516[/tex]
The cost of television was $350
So, the amount he paid extra = [tex] 379.13255516-350[/tex]
= [tex] 29.14[/tex]
Hence he pay $29.14 extra in interest to purchase television.
