Kelly uses her credit card to purchase a new television for $489.25. She can pay off up to $225 per month. The card has an annual rate of 21.7% compounded monthly. How much will she pay in interest? $5.58 $14.75 $17.79 $54.00
The original price of the television set is $489.25 She can pay up to $225 per month The annual rate is 21.7% or 1.81% (effective per month) The interest she must pay is 489.25 / 225 (1 + 0.0181) = $17.79
