Question

John forgot to pay his credit card bill of $137.92 until seven months after the due date of the bill. The bank charges credit card holders a one-time $35 late fee and interest (monthly interest rate 3.17% ) on unpaid credit card bills. How much should John pay the bank seven months after the due date of his credit card bill if

(A) the interest rate of 3.17% is a simple interest rate?

Answer 1

John should pay the bank a total of $66.73 seven months after the due date of his credit card bill.

Step-by-step explanation:

To calculate how much John should pay the bank seven months after the due date of his credit card bill, we need to consider the late fee and the interest.

1. Late fee: The bank charges a one-time $35 late fee, so John needs to pay $35.

2. Interest: The monthly interest rate is 3.17%, so after seven months, the total interest would be (137.92 * 0.0317 * 7) = $31.73.

Therefore, John should pay the bank a total of $35 + $31.73 = $66.73 seven months after the due date of his credit card bill.