Answer:
Cynthia will have to pay $152.16 extra in finance charges.
Step-by-step explanation:
Cynthia had a credit card with a 17% APR and a $3,265 balance.
Cynthia’s credit card company has increased her interest rate to 21%.
Here we have two scenarios, 1st when p = 3265 r = 17% and n = 24
Second when p = p = 3265 r = 21% and n = 24
Scenario 1:
EMI formula is :
Putting the values in formula we get;
=
EMI = $161.43
Scenario 2:
r =
Putting the values in formula we get;
=
EMI = $167.77
Now, difference in EMI's = dollars
And for 24 months this amount becomes = dollars
Therefore, Cynthia will have to pay $152.16 extra in finance charges.