Question

Irene has a credit card that uses the previous balance method. The opening balance of one of her 30-day billing cycles was $2510, but that was her balance for only the first 5 days of the billing cycle, because she then paid of her entire balance and didn't make any new purchases. If her credit card's APR is 11%, which of these expressions could be used to calculate the amount Irene was charged in interest for the billing cycle?

Answer 1

" which of these expressions could be used to calculate the amount"

Are the expressions given, please attach an image or file of the expressions.

Answer 2

Divide the annual interest rate by 12 to get the monthly rate, then multiply the monthly rate by the balance. In this case, the number of days does not matter because it is the previous balance method not the adjusted balance method.

(0.11/12) * $2510