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you owe $1,000 to a credit card company with 18% interest rate that will be compounded daily assume that there are no late fees and you knew not pay for one year how much will you owe after one year

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sqdancefan

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Answer:

  $1197.16

Step-by-step explanation:

The future value is given by ...

  FV = P(1 +r/n)^(nt)

for principal P earning annual rate r compounded n times per year for t years

Your balance due will be ...

  FV = $1000(1 +0.18/365)^(365·1) ≈ $1197.16

You will owe $1197.16 after 1 year.

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