Question

Marlene has a credit card that uses the adjusted balance method. For the first 10 days of one of her 30-day billing cycles, her balance was $570. She then made a purchase for $120, so her balance jumped to $690, and it remained that amount for the next 10 days. Marlene then made a payment of $250, so her balance for the last 10 days of the billing cycle was $440. If her credit card's APR is 15%, which of these expressions could be used to calculate the amount Marlene was charged in interest for the billing cycle?

Answer 1

For APEX it’s C

(0.15/365 • 30) ($320)

Good luck my dudes!!

Answer 2

Solution:

Starting balance of Marlene for first 10 days of her 30 days billing cycle

                                                         = $ 570

Purchase made = $ 120

Total Balance after purchase made = $ 570 + $ 120 = $ 690

Payment made = $ 250

Balance for last 10 days = $ 690 - $ 250 = $ 440

Credit Card APR = 15% Annually

Credit Card APR = $\frac{15}{12}=\frac{5}{4}$ = 1.25% monthly

Amount charged as an interest for billing cycle = 440 $\times \frac{1.25}{100}$

    = $\frac{550}{100}$

     =  $ 5.50 ( Amount charged)