Question

Jason charged a​ $900 television at a local outlet store that offered free credit if the balance is paid in four months. If the balance is carried past that​ date, then an 18 percent annual interest rate is charged on the entire amount. If Jason waits until one day past the due​ date, how much interest will he be​ charged? ​$

Answer 1

If Jason waits until one day past the due date to pay off the balance, he will be charged an 18 percent annual interest rate on the entire $900 amount. However, the interest for one day past the due date would be a fraction of the annual interest.

To calculate the interest for one day past the due date, you need to convert the annual interest rate to a daily rate.

Annual interest rate = 18%

Daily interest rate = Annual interest rate / 365 days

Daily interest rate = 18% / 365 ≈ 0.0493%

Now, calculate the interest charged for one day on the $900 balance:

Interest for one day = $900 × 0.000493 ≈ $0.444 (rounded to the nearest cent)

Therefore, if Jason waits until one day past the due date to pay off the balance, he will be charged approximately $0.44 in interest.

Explanation: