Question

Calculate the interest due on an outstanding credit card balance of $580 for 14 days if the interest rate is 0.059% per day. Give your answer to the nearest cent.

a) $0.48
b) $0.49
c) $0.50
d) $0.51

Answer 1

To calculate the interest due on an outstanding credit card balance, we can use the formula: Interest = Balance x Interest Rate x Time. Plugging in the values, we get an interest of approximately $0.48 for 14 days.

Step-by-step explanation:

To calculate the interest due on an outstanding credit card balance, we can use the formula:

Interest = Balance × Interest Rate × Time

First, let's convert the interest rate to a decimal: 0.059% = 0.059÷100 = 0.00059.

Next, we can plug in the values into the formula:

Interest = $580 × 0.00059 × 14

Calculating this, we get: Interest = $0.48212 ≈ $0.48

Therefore, the interest due on the outstanding credit card balance for 14 days is approximately $0.48.