Question

You have a credit card with a balance of $1,758.64. The interest is 12.75% APR. A late payment fee of $35.00 is added to the principal if you pay after the first month due date of 12/20. You make a
A.
$211.48
B.
$224.23
C.
$18.69
D.
$17.62

Answer 1

the answer is c) $18.69

Answer 2

Answer:

Total balance in Credit Card = $ 1758.64

Interest = 12.75 % APR

So, Amount paid as interest before $\frac{12}{20}$  = 1758.64 × $\frac{12.75}{100}$

= $\frac{22422.66}{100}$

= $224.227 (approx)

If i pay after due date , then total amount in my credit card = $ 1758.64 + $ 35=$1793.64

Then Amount paid as interest = 1793.64 $\times\frac{12.75}{100}$

               = 22868.91 ÷ 100

               = 228. 69 (Approx)

If Interest is charged monthly then interest charged

   =  $\frac{224.23}{12}$

= $ 18.68(approx) →→Monthly

Option B→→ $ 224.23  →→Yearly