How much interest will you have to pay for a credit card balance of $885 that...

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How much interest will you have to pay for a credit card balance of $885 that is 1 month overdue, if a 24% annual rate is cha

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Answer 1

Answer #1

Credit card balance = $885

Overdue = 1 month

Annual rate = 24%

Since the given rate is annual rate, we have to convert it into monthly rate, therefore,

Monthly rate = Annual rate / 12

= 24% / 12

= 2.00%

Interest charged = Credit card balance * Monthly rate * Number of months overdue

= $885 * 2% * 1

= $17.70

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Answer 2

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