Respuesta :
Answer:
It takes him approximately 5 months (5.08 months) to pay for the spontaneous purchase.
Explanation:
First of all, let us lay out the important information contained in the question clearly:
total cost of purchase = $125.87
interest rate = 20.99% (0.2099)
repayment plan = $30 per month.
Next you have to calculate the total amount incurred on the credit card after interest have been added, and this is calculated as:
total incurred amount = interest on amount + initial amount
To calculate interest on the original, amount, we will convert the interest rate to amount, and this is shown below:
interest on amount = interest rate × original amount
= 0.2099 × 125.87 = 26.420113
Therefore, total incurred amount = 26.4201 + 125.87 = $152.2901
Finally, we are told that Jose has a repayment plan of $30 per month, so, at this repayment rate, we will find how long it will take for him to complete the payment, as shown:
Number of months to make complete payment = total amount ÷ payments per month
Number of months to make complete payment = 152.2901 ÷ 30 = 5.08 months = 5 months approximately.
The number of time period it takes is 5 months.
Calculation of the time period:
Since total cost of purchase = $125.87, interest rate = 20.99% (0.2099), and repayment plan = $30 per month.
Now the total incurred amount should be
= interest on amount + initial amount
here,
interest on amount = interest rate × original amount
= 0.2099 × 125.87 = 26.420113
So,
total incurred amount is
= 26.4201 + 125.87
= $152.2901
Now the number of months should be
= 152.2901 ÷ 30
= 5.08 months
= 5 months
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