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 2 days of the billing cycle because she then paid off
her entire balance and didn't make any new purchases. If her credit cards
APR is 19%, which of these expressions could be used to calculate the
amount Shirley was charged in interest for the billing cycle?​

Answer 1

0.19× 2830

Explanation:

APR= APR rate×total expenditure/100

Answer 2

= $44.19

Explanation:

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`