SOLUTION: Using information from an internet source, determine the current interest rate a credit card or loan. Suppose you borrow $1,000 (or spend $1,000) on a credit card. How much will yo

Question 1133534: Using information from an internet source, determine the current interest rate a credit card or loan. Suppose you borrow $1,000 (or spend $1,000) on a credit card. How much will you owe in one month? 6 months if you pay nothing for 6 months?
Compute the 6 month cost in two ways:
Make 6 monthly computations. Enter these as formulas in a spreadsheet. (The goal here is really getting you to use spreadsheets and formulas for computations.)
Use the formula, A= 1000*(1 + r)^(N) where N = the number of periods (6) and r = the periodic interest rate = APR/12, where APR is the annual percentage rate.

Answer by Boreal(15235) (Show Source): You can put this solution on YOUR website!
A=1000*(1+(0.2995/12)^6) for monthly compounding and the 6 is for 6 months at 29.95%
A=1000*(1+(0.2995/12)) for the first month, then that result replaces $1000 and the second month is computed
the top A=$1159.41
the first month (the second formula) is $1024.96 Round only at the end when these are computed.
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