Question

You take out a cash advance of $2,790.00 on a credit card with a 3.5% cash advance fee and a 13.5% APR. What is the amount due by the end of the month?
(1 point)
Responses

$2,887.65
$2,887.65

$2,821.39
$2,821.39

$3,277.48
$3,277.48

$2,920.14

Answer 1

Cash advance fee = 2,790 × 0.035 = 97.65
Balance after fee = 2,790 + 97.65 = 2,887.65
Monthly interest = 13.5%/12 = 0.01125
Interest for one month = 2,887.65 × 0.01125 = 32.48606
Amount due = 2,887.65 + 32.48606 ≈ $2,920.14

Answer: $2,920.14