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The first credit card that you got charges 12.69% interest to its customers and compounds that interest monthly. Within one day of getting your first credit card, you max out the credit limit by spending $1,500.00. If you do not buy anything else on the card and you do not make any payments, how much money would you owe the company after 6 months?
Hints: 12.49% is an annual rate, that is, 12.69%/12=1.0575%/month for a period of 6 months If you use excel, you should use fx: future value: FV [Please attach screen print/screenshot of excel work, just before you hit 'OK'.
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