Question

If the total for this month's credit purchases is $550 at 24% annual interest, what is the total balance for the month after one month of interest accrues?
a) $365
b) $524
c) $561
d) $585

Answer 1

Answer:

The total balance for the month after one month of interest accrues is $561 .

Step-by-step explanation:

Given as :

The principal credit in account = p = $550

The rate of interest = 24% annual

The time period = 1 month = $\dfrac{1}{12}$ year

Let The Amount after one month of interest = $A

Now, From Simple Interest method

Simple Interest = $\dfrac{\textrm principal \times \textrm rate\times \textrm time}{100}$

Or, s.i = $\dfrac{\textrm p \times \textrm r\times \textrm t}{100}$

Or, s.i = $\dfrac{550\times 24\times \frac{1}{12}}{100}$

Or, s.i = $\dfrac{13200}{1200}$

Or, s.i = 11

∵ Amount = Principal + interest

So, A = s.i + p

Or, A = $11 + $550

∴  A = $561

So, The amount after one month on interest = A = $561

Hence, The total balance for the month after one month of interest accrues = A = $561 . Answer