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3 years ago

On her last credit card bill, Linda paid a variable rate of 1.8 percent on the first $200 and 1.2 percent on

Mathematics

1 answer:

dybincka [34]3 years ago

4 0

Interest paid by Linda is equal to $4.272 approximately equal to $4.27.

<u> Solution: </u>

Given that

Rate of interest on first $200 = 1.8%

Rate of interest on any amount over $200 = 1.2%

Unpaid balance amount of Linda’s credit card bill = $256

Need to calculate interest paid by her on $256.

Unpaid balance = $256

=$200 + 56

Amount over $200 = 56

Interest paid on first $200 = 1.8% of 200

= 0.018 x 200 = $3.6

Interest paid on amount over $200 that is $56 = 1.2% of 56

= 0.012 x 56 = $0.672

So total interest paid on $256 = 3.6 + 0.672 = $4.272.

Hence interest paid by Linda is equal to $4.272 approximately equal to $4.27.

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