On his last credit card bill, Frank paid a variable finance rate of 1.5 percent on the first $500, and one percent on any amount above $500. How much did he pay if the unpaid balance was $741.23?
To calculate the amount Frank paid on his credit card bill, we need to break it down into two parts: the amount he paid on the first $500 and the amount he paid on the remaining balance above $500.
1. Calculation for the first $500:
Frank paid a variable finance rate of 1.5 percent on the first $500. To find the amount he paid on this portion, we calculate:
Amount paid on first $500 = $500 * 0.015
2. Calculation for the remaining balance above $500:
The unpaid balance is $741.23, and Frank already paid off the first $500. So, we need to calculate the amount he paid on the remaining balance ($741.23 - $500 = $241.23).
Amount paid on remaining balance = $241.23 * 0.01
3. Total amount paid:
To find the total amount paid, we sum up the amounts obtained from the two calculations above:
Total amount paid = Amount paid on first $500 + Amount paid on remaining balance
Now let's calculate:
Amount paid on first $500 = $500 * 0.015 = $7.50
Amount paid on remaining balance = $241.23 * 0.01 = $2.41
Total amount paid = $7.50 + $2.41 = $9.91
Therefore, Frank paid $9.91 on his credit card bill.