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Fofino [41]
3 years ago
6

Viktor is a bike tour operator and needs to replace two of his touring bikes. He orders two bikes from the sporting goods store

for a total of $2,000 and pays using his credit card. When the bill arrives, he reads the following information:
Balance: $2,000
Annual interest rate: 14.9%
Minimum payment due: $40
Late fee: $10 if payment not received by 3/1/2013
To keep his good credit, Viktor promptly sends in a minimum payment of $40. When the next bill arrives, it looks a lot like the previous bill.
Balance: $1,984.34
Annual interest rate: 14.9%
Minimum payment due: $40
Late fee: $10 if payment not received by 4/1/2013
Explain how the credit card company calculated the new balance. Notice that the given interest rate is annual, but the payment is monthly.
Mathematics
1 answer:
Gennadij [26K]3 years ago
8 0
The bank added 1.24 % interest to the bill so they took 1960 and multiplied it buy .0124 and got 24.34 so they added 24.34 to 1960 and got 184.34 dollars
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