Question

Your parents have a credit card with a balance of $2,748.56. The interest rate is 10.5% APR. A late payment fee of $40.00 is added to the principal if they pay after 6/1. They make a payment for $300.00 on 6/1. How much interest did they pay?
(1 point)
Responses

$24.05
$24.05

$288.60
$288.60

$24.40
$24.40

$297.00

Answer 1

Monthly interest = APR/12 = 10.5%/12 = 0.875% = 0.00875.
Interest = $2,748.56 × 0.00875 = $24.05.

Answer: $24.05.