Answer:
You will have to pay $625.26.
Step-by-step explanation:
The calculation is monthly compounded, then the 22% split over 12 months.
The general equation of compound interest is:
[tex]\begin{gathered} y=P(1+\frac{x}{12})^{n*12} \\ where, \\ n=\text{ time in years} \\ P=\text{ sum owed} \end{gathered}[/tex]In this case, only considering 1 month:
[tex]\begin{gathered} y=614(1+\frac{22}{12*100})^1 \\ y=\text{ \$625.2566} \\ \text{ Rounding to the nearest hundredth:} \\ y=\text{ \$625.26} \end{gathered}[/tex]You will have to pay $625.26.
