Looking for some furniture for her new apartment, Susan visits the local swap meet in search of something cheap. Knowing that most swap meet vendors will not accept credit cards and that she will not have any money until her next payday, Susan decides to take out a $200 cash advance on her credit card at an interest rate of 32%.

If Susan had no previous balance on her credit card, and she manages to pay off the balance within 1 month, how much will she have to pay in interest?

a.
$5.33
b.
$32.00
c.
$173.33
d.
$205.33

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phillipking09141 phillipking09141 · Answer 1 · 2019-02-27T16:05:51+01:00

(p)*(i)*(t)

200*32%*1m

200*.32*(1/12)=5.333

the correct answer should be

A) 5.33

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Parrain Parrain · Answer 2 · 2022-03-02T12:45:29+01:00

Based on the cash advance that Susan took and the interest rate, the amount she will pay in interest is a. $5.33.

The amount that Susan will pay if she pays in a month can be found as:

= Cash advance x Interest x ( 1 / 12 months)

Solving gives:

= 200 x 32% x 1/12

= $5.33

In conclusion, option A is correct.

Find out more on credit card interest at https://brainly.com/question/15222470

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