Mathematics for Data and Financial Literacy

A primary credit cardholder's card has an APR of 24.99%. The current monthly balance, before interest, is $3,476.25. If the balance is paid off after one month of interest charges, how much more will have been paid instead of using cash?

$868.71
$86.87
$724.80
$72.39

Question

Mathematics for Data and Financial Literacy

A primary credit cardholder's card has an APR of 24.99%. The current monthly balance, before interest, is $3,476.25. If the balance is paid off after one month of interest charges, how much more will have been paid instead of using cash?

$868.71
 $86.87
 $724.80
 $72.39

Phantomdex · Answer

I believe it should be D, since it's the most logical answer.

TheJag18 · Answer

Do you mind showing work? I wanna learn how to do it

Phantomdex · Answer

Our apr is 24.99% our monthly interest rate should be 24.99/12 = 2.0825 which can also be as 0.020825 So, our payment is made after a month. Interest rate = 0.020825 x 3476.25 = $72.39.

TheJag18 · Answer

Awsome, thank you

TheJag18 · Answer

also, how does 2.0825 become 0.020825?

TheJag18 · Answer

@phantomdex

Phantomdex · Answer

It's in the decimal form right there, the 0.020825 its basic decimal for we just shortened/simplified it to 2.0825

TheJag18 · Answer

did you divide 2.0825 to get it though?

TheJag18 · Answer

nvm mind i got it