The amount of interest that would be paid on a credit card at the end of the second 30-day month is equal to: E. $10.80.
Given the following data:
Conversion:
365 days = 1 year
30 days = X year
Cross-multiplying, we have:
[tex]365X = 30\\\\X=\frac{30}{365}[/tex]
X = 0.08219 year
To determine the amount of interest that would be paid on a credit card at the end of the second 30-day month:
First of all, we would calculate the simple interest for the first 30-day month:
Mathematically, simple interest is given by the formula:
[tex]S.I = \frac{PRT}{100}[/tex]
Where:
Substituting the given parameters into the formula, we have;
[tex]S.I = \frac{1000 \times 12.99 \times 0.08219}{100}\\\\S.I = \frac{1067.648}{100}[/tex]
Simple interest = $10.6765
[tex]S.I = 1000 + 10.6765[/tex]
S.I = $1010.6765.
Now, we can determine the amount of interest that would be paid on a credit card at the end of the second 30-day month:
[tex]S.I_2 = \frac{1010.6765 \times 12.99 \times 0.08219}{100}\\\\S.I_2 = \frac{1079.05}{100}[/tex]
Interest = 10.79 ≈ $10.80.
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