Question

Looking for some furniture for her new apartment, Susan visits the local swap meet in search of something cheap. Knowing that most 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?

Answer 1

Given:
cash advance = 200
interest rate = 32% , I'm assuming this is a per annum rate.
pay w/in a month.

I = 200 * 32% * 1/12
I = 5.33

She will have to pay 5.33 in interest after 1 month.