Question

Sandy got a new credit card. She paid a membership fee of $15 and a balance transfer

fee of 5% when she moved $823.46 from her old card to her new card. During the year,
she paid these finance charges, February $3.56; May $5.82; July 4.92; and September
$2.18. What was the total annual cost of the credit card?

Answer 1

Sandy's total annual cost for her credit card is $72.65.

Step-by-step explanation:

To calculate the total annual cost of Sandy's credit card, we need to consider the membership fee, the balance transfer fee, and the finance charges she paid throughout the year.

1. Membership fee: $15.
2. Balance transfer fee: 5% of $823.46 = $41.17.
3. Finance charges paid in February, May, July, and September: $3.56 + $5.82 + $4.92 + $2.18 = $16.48.

To find the total annual cost, we add up these amounts: $15 + $41.17 + $16.48 = $72.65.

Therefore, the total annual cost of Sandy's credit card is $72.65.