Mark spends 800 on his credit card his credit card company c

Mark spends 800 on his credit card. his credit card company charged 18% compounded monthly. he forgets to pay it for 3 months. how much does he owe now how much of that is interest?

Solution

Accursed amount =836.54 and Interest is 36.54

Calculation.

A = P(1+r/n)^nt =800(1+.18/12)³=836.54
CI = A-P=836.54-800=36.54
Where,
CI = Compounded interest
A = Final amount
P = Principal=800
t = Time period in years=1
n = Number of compounding periods per year=3
r = Interest rate per annum in percentage=.18