Question 1170406: High interest rates make it difficult for
people to pay off credit card debt in a reasonable period
of time. The interest I (in dollars) paid on a $10,000 debt
over 3 years when the interest rate is r% can be approximated
by the equation
I/175.393 + 0.663 = r
(Source: Consumer Federation of America). If the credit
card interest rate is 19.8%, find the amount of interest
paid during the 3 years.
Answer by CPhill(1959)   (Show Source):
You can put this solution on YOUR website! Let's solve the problem step-by-step.
**Given:**
* The equation relating interest paid (I) and interest rate (r):
* I / 175.393 + 0.663 = r
* The credit card interest rate (r): 19.8%
**Goal:**
* Find the amount of interest paid (I) during the 3 years.
**Solution:**
1. **Substitute the interest rate (r) into the equation:**
* I / 175.393 + 0.663 = 19.8
2. **Isolate the term with I:**
* I / 175.393 = 19.8 - 0.663
* I / 175.393 = 19.137
3. **Solve for I (interest paid):**
* I = 19.137 * 175.393
* I ≈ 3356.55
**Therefore, the amount of interest paid during the 3 years is approximately $3356.55.**
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