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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

Respuesta :

Answer:

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 = [tex]0.0908*1255=113.954[/tex]

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

Compound interest formula = [tex]P(1+\frac{r}{n})^{nt}[/tex]

Putting above values in the formula:

[tex]1368.954(1+\frac{0.1156}{12})^{2.5*12}[/tex]

[tex]1368.954(1.0096)^{30}[/tex]

= $1823.351

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

Hence, option B is the answer.

Answer:

its a

Step-by-step explanation:

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