Question

How do I solve this?

Answer 1

@mathmate

Answer 2

They \(expect\) you to proceed as follows (as though no purchase was made in the month):
1. decide if they need to pay the late payment charge.
2. interest is the APR divided by 12 applied to the amount owing.

If they made purchases during the month, the addition amount owed has interests calculated as of the purchase date (not in this case).

Answer 3

There is no late payment charge since they didn't pay after 6/1, right?

Answer 4

To find the interest do you do this?
2748.56*.105*(5/12)

Answer 5

Hello?

Answer 6

Yes, that's correct.

Answer 7

So the interest is 120.25

Answer 8

I misread the expression
2748.56*.105*(5/12)
where does the 5 come from?

Answer 9

Do you know what formula I'm using? I=Prt
Interest=Principal*rate*time, time being month/12

Answer 10

Maybe you use 6 instead of 5? I don't think so, because 6/1 is the due date, and it's a new month.

Answer 11

Statements are (usually) monthly.
If you multiply by 5 or 6, that means the statements are semi-annual !!
It is understood they calculate interest every month, so the period is 1 month, or 1/12 of a year.

Answer 12

Hmm are you sure?

Answer 13

If that's the case then the answer is 24.05

Answer 14

It makes sense since everything I tried didn't give me the right answer

Answer 15

The date and late fee were there to throw people off (which happens often in real life) !

Answer 16

The late fee is just worthless information right? They didn't pay past the due date, they paid on the due date.

Answer 17

Exactly! It takes more gut to throw out information than to use it, unfortunately! :(

Answer 18

Alright well thanks for the help! I'm almost done with this thing, I'll let you know if I get confused again. If you're still around that is.

Answer 19

Keep up the good work!