Answer:
= $1478.73 or = $1478.72
Step-by-step explanation:
Credit companies charge daily but you only mention yearly question so i will show you yearly and monthly and daily as 3 separate methods.
For years
we use the expression a x {(+1) + b} ^t = 900 x 1.18^3
For months
we use the expressions a x {( +1) +b ^t * 12
We keep to yearly interest
And prove 900 x 1.18^3 = 1478.7288
= $1478.73
Generally, credit companies round down to $1478.72
We work out a yearly rate = 18% interest and divide amount borrowed by 18%
900/18 = 50
then whatever is paid we minus this from the $900 = 900 x 50 = 45,000
50 x 365 = 18,250 owed if no payments were met if agreed to pay monthly but before end of the 3 year contract = meaning if paid at end of month 12- before start of month 13 the 360th day.
