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
4 answers
$3012.33
How did you get this answer?
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.
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.
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!!!
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!!!
1 answer