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1. Geoffrey Crayon buys a $3,000 computer. To keep his bookkeeping simple, he starts a new credit card
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that charges 22% annual interest per year (compounded monthly) and will use the card for nothing else.
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Geoffrey pays $400 per month until the balance is paid off. Finish the table below to find his total interest in dollars.
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MonthOld BalancePaymentInterest Due OnInterest Rate
Interest Amount
New Balance
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1$3,000.00$400.00$2,600.001.83%$47.67$2,647.67
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2$2,647.67$400.00$2,247.671.83%$41.21$2,288.87
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3$2,288.87$400.00$1,888.871.83%$34.63$1,923.50
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4$1,923.50$400.00$1,523.501.83%$27.93$1,551.43
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5$1,551.43$400.00$1,151.431.83%$21.11$1,172.54
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6$1,172.54$400.00$772.541.83%$14.16$786.71
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7$786.71$400.00$386.711.83%$7.09$393.80
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8$393.80$393.80$0.001.83%$0.00$0.00
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$3,193.80Total Paid$193.80Total Interest
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