Question

You take out a cash advance of 2,790.00on a credit card with a 3.5% cash advance fee and a 13%apr (adjust for monthly rate) what is the amount due by the end of the month

Answer 1

Given that the credit card has a 3.5% cash advance fee. The the cash advance fee on a cash advance of $2,790.00 is given by

$0.035\times\ 2,790=\ 97.65$

Given that the card has an APR of 13%, the value of the cash advance at the end of the month is given by

$FV=2790(1+0.13)^{ \frac{1}{12} } \\ \\ =2790(1.13)^{ \frac{1}{12} }=2790(1.0102) \\ \\ =\ 2,818.56$

Therefore, the amount due at the end of the month is given by $2,818.56 + $97.65 = $2,916.21

Answer 2

Answer:

3277.48

Step-by-step explanation:

2790 * .035 = 2887.65

2887.65 * .135 = 389.83

2887.65 + 389.83 = 3277.48