Question

a customer receives a new credit card and makes the following transactions. a cash advance of $1000 on october 10. she then makes $2000 purchase between october 12 and october 21. her due date on the bill is november 3 and yearly interest rate is 18%. interest is only on cash advances and overdue payments. how much does she owe?

plz help with this question its due very soon and i cant get the answer. Thank u

Answer 1

$3012.33

Answer 2

How did you get this answer?

Answer 3

Not sure if this is correct, but here is what I did.

I=P*r*t
Interest = Principal amount of money borrowed * annual interest Rate charged as a decimal * the length of Time of the loan(can be in months or years)

31 days in October - 10 days = 21 days
21 + 3 days in November = 24 days

I = 1000(0.18)(24/365)(24/265)
Interest = $65.75

$1000 + $65.75 + $2000 = $3065.75 owed on credit card.

Answer 4

You must take the advance times the interest, times the time.

1000(0.18)(24/365)
= 1000(0.18)(0.065753424)
= 1000(0.011835616)
= 11.8356164 so approximately, 11.84

now add $11.84 (interest) to $1000 (the advance), as well as the $2000 purchase. and we get $3011.84.

So $3011.84 is our answer!!!