Question

Joan will spend $498.00 on a new washing machine. She will use her credit card to withdraw $500.00 cash to pay for the machine. The credit card company charges a $5.00 cash-withdrawal fee and 2% interest on the borrowed amount, but not including the cash-withdrawal fee. How much will Joan owe after one month?

Answer 1

$510.00 2% of 500 is 10 so add 10 to 500. equalling $510.00 next if it was two months you would repeat but 2% of $510 unless you paid down the credit