Question

Shirley has a credit card that uses the previous balance method the opening balance of one of her 30 day billing cycles was $2830 but that was her balance for only the first two days of the billing cycle because she’s been paid off the entire balance and didn’t make any new purchases if your credit cards APR is 19% which of these expressions can be used to calculate the amount Shirley was charged interest for the billing cycle

Answer 1

`((0.19)/(365) * 30) * 2830`

Explanation:

Given:

APR = 19%

Billing cycle = 30 days

Balance = $2830

Let's first find the daily rate,

Daily rate =
`(0.19)/(365) = 0.000521`

The daily rate = 0.000521

To calculate the amount Shirley was charged interest for the billing cycle, we use:

Daily rate * billing cycle * balance

Where,

Daily rate =
`(0.19)/(365)`

Billing cycle = 30 days

Balance = $2830

Therefore, expression to be used =

`((0.19)/(365) * 30) * 2830`

= $44.19