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natima [27]
3 years ago
14

Looking for some furniture for her new apartment, Susan visits the local swap meet in search of something cheap. Knowing that mo

st swap meet vendors will not accept credit cards and that she will not have any money until her next payday, Susan decides to take out a $200 cash advance on her credit card at an interest rate of 32%. 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?
Mathematics
1 answer:
ahrayia [7]3 years ago
6 0
Unlike credit card purchases, interest charged on cash advances is already incurred even if you pay before the due date. 

32% is the annual interest rate
1 month is the term
200 is the principal

32% / 12 months = 2.67% per month

200 * 2.67% = 5.34 monthly interest

200 * 32% = 64  annual interest
64/12 = 5.33  monthly interest

She has to pay $5.34 in interes
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