163k views
4 votes
Esther's credit card balance shows a balance of $1950 for the past 52 days. How

much would she be charged in interest if the rate is 25.99%

1 Answer

2 votes

Answer:

Esther would be charged $72.88.

Explanation:

To calculate Esther's interest charge, we need to know the interest rate and the length of time the balance has been outstanding.

Given that Esther's credit card balance has been outstanding for 52 days, and the interest rate is 25.99%, we can use the following formula to calculate her interest charge:

Interest = (Principal x Rate x Time) / 365

Where:

Principal = the amount of the balance

Rate = the interest rate as a decimal

Time = the length of time the balance has been outstanding

Using this formula, we can calculate Esther's interest charge as follows:

Interest = (1950 x 0.2599 x 52) / 365

Interest = 72.88

Therefore, Esther would be charged $72.88 in interest if the rate is 25.99%.

User Mikael Couzic
by
8.5k points