Question

Linda received a credit card through the mail. The interest rate charged by the credit card company is 24.9%. If she maintains an average balance of $2,400 owed on the card, how much will she have paid in interest after one year?

Answer 1

interest rate = 24.9 % p.a
hence = 24.9 /12 = 2.075% p.m
Assuming Linda pay's off her owed amount at every month end, she will have to pay interest @ 2.075% p.m on $ 2400
= 2400 * 0.02075
= 49.8$ p.m
= 49.8 * 12
= 597.6 $ p.a

Answer 2

ok thank you

Answer 3

No Problem :)