Question

High interest rates make it difficult for people to pay off credit card debt in a reasonable period of time. the interest i (in dollars) paid on a $10,000 debt over 3 years when the interest rate is r% can be approximated by the equation shown below.â i 175.393 + 0.663= r if the credit card interest rate is 18.4%, find the amount of interest paid during the 3 years.

Answer 1

To begin with, note that the equation is for a 3 year debt, which is what is requested in the question. This means that we can use the equation. 

Now, the $10,000 is just additional information meant to make you confused. Whether it is there or not does not make a change, unless there are other parts to this question which you did not state here. 

Therefore, all we need to do is to substitute in what we are given:
r = 18.4

When r = 18.4, we will get:
l / 175.393 + 0.663 = 18.4 
l / 175.393 = 17.737l
= 175.393 x 17.737l = 3,110.94564, which we can round off to $3,110.95