Question

You have a credit card with a balance of $1,256.34 and a 9.5% APR. A late payment fee of $29.00 is added to the principal if you pay after 5/28. You make a payment for $200.00 on 5/28. How much interest did you pay?
(1 point)
Responses

$100.35
$100.35

$9.95
$9.95

$8.36
$8.36

$119.35
$119.35

Answer 1

Interest = balance × (APR/12) = 1,256.34 × (0.095/12) ≈ $9.95.

So you paid $9.95 in interest (the rest of the $200 payment—$190.05—reduced principal).