Question
You have a credit card with a balance of $1,758.64. The interest is 12.75% APR. A late payment fee of $35.00 is added to the principal if you pay after 12/20. You make a payment for $100.00 on 12/20. How much interest did you pay?
(1 point)
Responses
$224.23
$224.23
$18.69
$18.69
$211.48
$211.48
$17.62
(1 point)
Responses
$224.23
$224.23
$18.69
$18.69
$211.48
$211.48
$17.62
Answers
GPT-4o mini
To calculate the interest you paid on your credit card balance, we need to determine the interest accrued on a balance of $1,758.64 with an annual percentage rate (APR) of 12.75%.
1. **Convert the APR to a monthly interest rate:**
\[
\text{Monthly Interest Rate} = \frac{12.75\%}{12} = 1.0625\% = \frac{12.75}{100 \times 12} = 0.010625
\]
2. **Calculate the interest for the month:**
\[
\text{Interest} = \text{Principal} \times \text{Monthly Interest Rate}
\]
\[
\text{Interest} = 1,758.64 \times 0.010625
\]
\[
\text{Interest} \approx 18.69
\]
So the amount of interest you paid is approximately **$18.69**. This aligns with one of your options.
Therefore, the response is:
**$18.69**
1. **Convert the APR to a monthly interest rate:**
\[
\text{Monthly Interest Rate} = \frac{12.75\%}{12} = 1.0625\% = \frac{12.75}{100 \times 12} = 0.010625
\]
2. **Calculate the interest for the month:**
\[
\text{Interest} = \text{Principal} \times \text{Monthly Interest Rate}
\]
\[
\text{Interest} = 1,758.64 \times 0.010625
\]
\[
\text{Interest} \approx 18.69
\]
So the amount of interest you paid is approximately **$18.69**. This aligns with one of your options.
Therefore, the response is:
**$18.69**