The interest rate applicable for the credit card is 0.5% per month. Richard makes a purchase of $1000 and makes the payment on his card after 14 months. Assume there are no additional charges for non-payment of dues and Richard can pay the entire amount with interest after 14 months.
The amount due after 14 months is equal to:
`1000*(1 + 0.5/100)^14 `
The amount due after 14 months is $1072.32