Mitchell has decided to use a credit card to buy a new gaming system. The price of the item with tax is $318. If he makes the minimum payment of $15 each month, it will take him 26 months to pay off the debt at an 18% interest rate. The total interest will be $67.64. How much will the item cost if Mitchell uses a credit card and only makes the minimum payment each month?
Accepted Solution
A:
Answer:The item will cost $385.64.Step-by-step explanation:The price of the item with tax is = $318. If he makes the minimum payment of $15 each month, it will take him 26 months, this will cost him 15*26=$390Also given is, the total interest will be = $67.64The item will cost if Mitchell uses a credit card and only makes the minimum payment each month = 318+67.64 = $385.64