Question

If the total for this month's credit purchases is $550 at 24% annual interest, what is the total balance for the month after one month of interest accrues?

a) $365
b) $524
c) $561
d) $585

Answer 1

Answer:561

Explanation:

Answer 2

The total balance for the month after one month of interest accrues is $561 .

Explanation:

Given as :

The principal credit in account = p = $550

The rate of interest = 24% annual

The time period = 1 month =
`(1)/(12)` year

Let The Amount after one month of interest = $A

Now, From Simple Interest method

Simple Interest =
`(\textrm principal * \textrm rate* \textrm time)/(100)`

Or, s.i =
`(\textrm p * \textrm r* \textrm t)/(100)`

Or, s.i =
`(550* 24* (1)/(12))/(100)`

Or, s.i =
`(13200)/(1200)`

Or, s.i = 11

∵ Amount = Principal + interest

So, A = s.i + p

Or, A = $11 + $550

∴ A = $561

So, The amount after one month on interest = A = $561

Hence, The total balance for the month after one month of interest accrues = A = $561 . Answer