You have just entered an MBA program and have decided to pay for your living expenses using a credit card that has no minimum monthly payment. You intend to charge $1,080 per month on the card for the next 21 months. The card carries a monthly interest rate of 1.1%. How much money will you owe on the card 22 months from now, when you receive your first statement post-graduation?

How much do you owe?

Please show working out and the formula used