Question

A consumer charges a $2,530.16 purchase on their credit card. The card has a daily interest rate of 0.042%. If the consumer pays off the balance at the end of 30 days, how much more in interest will they pay for the purchase?

Answer 1

c.

$31.88

Explanation:

edge 2020

Answer 2

Amount debited through credit card = $ 2,530.16=P

Daily interest rate =0.042%=R

On first day total amount paid=

`P(1+(R)/(100))`

On Second day, amount equals to

`P(1+(R)/(100))^2`

Amount Charged at the end of 30 days is given by

`P(1+(R)/(100))^(30)`

`=2530.16*[1+(0.0042)/(100)]^(30)\\\\= 2530.16 *(1.00042)^(30)\\\\=2530.16* 1.01267703\\\\=2562.2349`

So, total interest paid after 30 days =2562.24-2530.16

=Rs 32.08(approx)