Activity

Tuesday, December 18, 2012 9:23 AM

TOTAL=

2. Refer back to your total for the items you purchased from the Mall in your shopping cart after applying the discounts and tax. Type this total in your blog post.
3. Find the amount of interest you would pay if you had paid with a credit card. Assume it takes you 18 months to pay off your credit card and you are paying 12.5% interest compounded every six months. Type all the steps in your blog post. I= Prt I= 428.72*0.125*1.5=80.3850 428.72+80.39=509.11 I= Prt I= 509.11*0.125*1.5=95.4581 509.11+95.46=604.57

$428.72

I= Prt I= 604.57*0.125*1.5=113.3569 604.57+113.36=$717.93 after 3 years

4. Write a paragraph explaining what you have learned about compound interest.
I've learned that with compound interest what you're trying find how much money you're either getting or paying fast! What this also helps with is easily finding how much you get or owe after a long period of time. At first compound interest seemed very hard but it's actually just like finding regular interest. You get the total, the percent two places back, and then the t for example on this problem would be 1.5 since 18 months is a year and a half. Then since 18 divided by 6 is 3 you would do the interest problem 3 times again using the answer of the one before as your total. Sounds hard? Actually it's pretty simple and very useful.

Interest Page 1

Interest Page 2