Joe has just received his first credit and decided to use it to pay for part...

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Joe has just received his first credit and decided to use it to pay for part of his tuition for school. He is paying 23% APR interest on credit. He decided he can afford to pay $50 per month to pay off his debt. He paid a total of $2,150 for his tuition. Calculate how much interest he will pay in six months if he continues to pay $50 per month. Billing cycle is 30 days. Finance Charge is 23% APR. Use 360 days per year. Formula: Balance * Interest Rate * Billing Cycle/360 Example: 2,000 20 30/360 = 33.33 2,000+33.33=2,033.33 2,033.33-75.00= 1,958.33 Month September October November December January February Balance Amount Still Owed Interest Rate Interest= New Balance = End of Month Balance = Time = Interest Total Paid 33.33 2,033.33 1,958.33 Balance + Interest= New Balance New Balance - Payment Total Interest = End of Month Balance Joe has just received his first credit and decided to use it to pay for part of his tuition for school. He is paying 23% APR interest on credit. He decided he can afford to pay $50 per month to pay off his debt. He paid a total of $2,150 for his tuition. Calculate how much interest he will pay in six months if he continues to pay $50 per month. Billing cycle is 30 days. Finance Charge is 23% APR. Use 360 days per year. Formula: Balance * Interest Rate * Billing Cycle/360 Example: 2,000 20 30/360 = 33.33 2,000+33.33=2,033.33 2,033.33-75.00= 1,958.33 Month September October November December January February Balance Amount Still Owed Interest Rate Interest= New Balance = End of Month Balance = Time = Interest Total Paid 33.33 2,033.33 1,958.33 Balance + Interest= New Balance New Balance - Payment Total Interest = End of Month Balance

Answer rating: 100% (QA)

To calculate the interest Joe will pay in six months we need to determine the remaining balance on his credit after each monthly payment and calculate the interest accrued on that balance Well continu... View the full answer