Question

You charged $658.17 on your new credit card for your college textbooks. Your credit card has an introductory APR of 6.8% for the first 6 months which gave you a monthly payment of $111.88. Assuming you managed to pay off the credit card in 6 months, how much of what you paid back was interest?

A. $11.13
B. $671.28
C. $13.11
D. $680.86

Answer 1

Option C). After calculating the total amount paid over 6 months and deducting the original charge, the total interest paid on the credit card was determined to be $13.11.

Step-by-step explanation:

To determine how much of the repayment was interest, we first calculate the total amount paid over the 6 months. The monthly payment is $111.88, so over 6 months, the total payment made is:

6 months * $111.88/month = $671.28

The original charge on the credit card was $658.17. By subtracting the original amount from the total amount paid, we can find the total interest paid:

$671.28 (total paid) - $658.17 (original charge) = $13.11 (total interest paid)

Therefore, the amount of interest paid back was $13.11, which corresponds to option C.