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

Answer 1

Monthly interest = balance × (APR/12) = 1,758.64 × (0.1275/12) = 1,758.64 × 0.010625 = 18.69.

So you paid $18.69 in interest (and $81.31 toward principal).