1. Zainab's total bill when she got home will be <u>$3,703.33.</u>
2. The total interest paid is <u>$28.33</u>.
<h3>What is a credit card?</h3>
A credit card is a payment card that enables the cardholder to make purchases charged to a line of credit instead of the account holder's cash deposits. The credit card account accrues interest periodically (most ideally, daily) and payment may be required each month to offset the balance.
<h3>What is Future Value?</h3>
The future value is the amount that will be due on an investment or payment after compounding interest for a future date. The future value can be computed with the formula below.
FV = PV(1+r)^n
Where:
FV = future value
PV = present value
r = annual interest rate
n = number of periods interest held
The future value can also be calculated using an online finance calculator as follows:
<h3>Data and Calculations:</h3>
Annual interest rate = 28%
Daily interest rate = 0.0767 (28%/365)
N (# of periods) = 21 days
I/Y (Interest per year) = 28%
PV (Present Value) = $0
PMT (Periodic Payment) = $175
P/Y (# of periods per year) = 365 days
C/Y (# of times interest compound per year) = 365 days
<u>Results</u>:
FV = $3,703.33
Sum of all periodic payments = $3,675.00 ($175 x 21)
Total Interest = $28.33
Thus, Zainab's total bill is $3,703.33 with an interest of $28.33.
Learn more about future value (total bill) at brainly.com/question/24703884
