Felcia will pay $292.50 ($250 + $42.50 interest).
Step-by-step explanation:
Step 1; Felicia pays $3000 for home repairs. So the repair fees cost $3000. Felicia pays by credit card so an APR of 17% is added to the price i.e. 17% is added to the $3000. To calculate how much 17% of $195,000 is we make 17% a fraction by dividing it by 100 and multiplying it with the amount.
17% of $3,000 = [tex]\frac{17}{100}[/tex] × $3,000 = 0.17 × $3,000 = $510 a year.
So total amount owed = Borrowed amount + Interest amount
= $3,000 + $510 = $3,510.
Step 2; To calculate the monthly payments we divide the total amount owed by the number of months.
Borrowed amount owed a month = $3,000 / 12 = $250 a month.
Interest amount owed a month = $510 / 12 = $42.50 a month.
So Felicia owes $292.50 a month out of which $510 is for the borrowed amount and $42.50 is for the interest.
