Due to Poor Spending Habits, Ricky Has Accumulated $10,000 in Credit

question 126

Multiple Choice

Due to poor spending habits, Ricky has accumulated $10,000 in credit card debt. He has missed several payments and now the annual interest rate on the card is 18.95 percent! If he pays $175 per month on the card, in total, how much interest expense does Ricky pay to the credit card company?

• A) $15,987.50
• B) $17,008.52
• C) $12,905.13
• D) $8,714.62

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Definitions:

Equation Complexity

A measure of the difficulty or intricacy of a mathematical equation, often based on the number of operations or variables involved.

Exponential Functions

Mathematical functions characterized by an expression in which a constant base is raised to a variable exponent.

Compound Interest

Interest for a loan or deposit that includes calculations on the original principal amount as well as the interest accumulated from earlier periods.

Decimal Multiplication

A mathematical operation involving the multiplication of numbers represented in decimal form.