heidi and her family took a vacation. heidi placed the hotel room charge of $689 on her credit card. she…

heidi and her family took a vacation. heidi placed the hotel room charge of $689 on her credit card. she paid the minimum of $20 a month for 49 months. at an interest rate of 18%, she paid $287.90 in interest. how much did heidi spend on the hotel room?

heidi and her family took a vacation. heidi placed the hotel room charge of $689 on her credit card. she paid the minimum of $20 a month for 49 months. at an interest rate of 18%, she paid $287.90 in interest. how much did heidi spend on the hotel room?

Answer

Explanation:

Step1: Calculate total payment

The total amount paid in monthly installments is (20\times49 = 980) dollars.

Step2: Calculate total cost

The total cost of the hotel room is the sum of the original charge and the interest paid. So, it is (689+287.90=976.9) dollars. But wait, we also have the monthly payments. However, actually, the total amount spent is the original charge plus the interest. The monthly - payment calculation was a wrong path. The correct way is: The total amount spent (A) is the sum of the principal amount (P = 689) (the hotel room charge) and the interest (I=287.90). So (A=P + I).

Answer:

(976.9)