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serious [3.7K]
2 years ago
6

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? a. $5.33 b. $32.00 c. $173.33 d. $205.33
Mathematics
1 answer:
liraira [26]2 years ago
7 0
Using the formula for interest:

F = P (1 + r/n)^t

Where:
F = future value
P = Principal value
r = interest rate per year
n = interest period
t = duration

Substituting the given values:
F = 200 (1 + 0.32/12)^1
F = 205.33

To obtain the interest, we subtract the principal value from the future value. This is shown below:

Interest = 205.33 - 200 = 5.33

Among the choices, the answer is A.
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