emilee makes a $600 purchase on a credit card with a 12% annual interest rate and a 25 - day grace period…

emilee makes a $600 purchase on a credit card with a 12% annual interest rate and a 25 - day grace period. if she pays off the purchase 12 months after the grace period, what is the total cost of her purchase including interest? formula: total cost = purchase amount + (purchase amount · interest rate)

emilee makes a $600 purchase on a credit card with a 12% annual interest rate and a 25 - day grace period. if she pays off the purchase 12 months after the grace period, what is the total cost of her purchase including interest? formula: total cost = purchase amount + (purchase amount · interest rate)

Answer

Explanation:

Step1: Substitute values into formula

Given purchase amount ( = 600), interest rate (=0.12). Total cost (=600+(600\times0.12))

Step2: Calculate the interest amount

(600\times0.12 = 72)

Step3: Calculate the total cost

(600 + 72=672)

Answer:

($672)