Question

A consumer charges a $50 purchase on a credit card. The card has a daily interest rate of 0.038%. If the consumer pays off the balance at the end of 30 days, how much in interest will be paid
for the purchase? Round your answer to two decimal places.

Answer 1

Answer:

SIMPLE ONE-TIME INTEREST

I

=

P

0

r

A

=

P

0

+

I

=

P

0

+

P

0

r

=

P

0

(

1

+

r

)

I is the interest

A is the end amount: principal plus interest

P0 is the principal (starting amount)

r is the interest rate (in decimal form. Example: 5% = 0.05

Step-by-step explanation: