Question

A consumer charges a $46.92 purchase on a credit card. The card has a daily interest rate of 0.039%. If the consumer pays off the balance at the end of 30 days, how much in interest will be paid for the purchase?
a.
$0.06
b.
$0.18
c.
$0.55
d.
$5.49

Answer 1

Interest = principal × daily rate × days = 46.92 × 0.00039 × 30 ≈ 0.54896 ≈ $0.55.
Answer: c. $0.55