Question

1. Find the interest generated by a balance of $7800 on a credit card charging 27.8% interest per year over a 30 day period using Banker’s Rule.

Answer 1

the interest generated over 30 days using banker's rule is $180.7

Explanation:

balance = $7800

credit card charging interest rate per year = 27.8%

interest generated over a 30 day period =

= P × R ×T

=
`7800* 0.278* (30)/(360)`

= $180.7

hence, the interest generated over 30 days using banker's rule is $180.7