Question

If Susan had no previous balance on her credit card, and she manages to pay off the balance within 1 month, how much will she have to pay in interest?

Answer 1

Answer:

She will pay $5.33 in interest.

Explanation:

200 dollars at a 32% interest rates means that the interest accrued for the full year will be:

200*0.32 = 64 dollars

Since she is managing to pay her balance within one month, she will only be charged for that month, hence her interest payment will be:

64/12 = 5.33 dollars

Answer 2

If Susan had no previous balance on her credit card, and she manages to pay off the balance within 1 month, then, there will be no interest charged in her account. It is in the credit card's privilege that if you are a good payer and you pay before your due date, then you will have 0% interest.