Answer:
Option B: $932.71
Step-by-step explanation:
He owes $9,889 on a credit card with a 23.5% interest rate.
Thus;
Current balance; P = $9,889
Interest rate; r = 23.5% = 0.235
Number of compounding; n = 12
We will use the formula;
A = P(r/n)/(1 -(1 +r/n)^(-nt))
t is number of years = 1
Thus;
A = (9889 × 0.235/12)/(1 - (1 + (0.235/12))^(-12 × 1)
A = (9889 × 0.019583)/(1 - (1 + (0.235/12))^(-12))
A = $932.71
