lizzy borrowed $900 at 18% interest for christmas gifts. how much will she owe in total after 3 years?

$1478.73

Step-by-step explanation:

Use the compound amount factor and assume compounding once per year.  Then:

A = $900(1 + 0.18)^3

   =  $1478.73 due after three years.

= $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.

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y > 1/3x

y < = -x + 4

hope this : )