Jemima makes $1050.00 worth of purchases on her credit card. If the credit card charges 21% annual interest, how much interest will she accumulate on the unpaid balance over 45 days?

Question

Jemima makes $1050.00 worth of purchases on her credit card. If the credit card charges 21% annual interest, how much interest will she accumulate on the unpaid balance over 45 days?

$32.78

$27.18

$94.18

$23.62

Answer 1

To calculate the interest, we need to know the daily interest rate. This can be found by dividing the annual interest rate by 365 days:

21% / 365 = 0.0575% (daily interest rate)

Now, we can calculate the interest accumulated on the unpaid balance over 45 days by multiplying the daily interest rate by the balance:

0.0575% * $1050.00 = $0.60375 (daily interest)

$0.60375 * 45 days = $27.17 (interest accumulated over 45 days)

Rounded to the nearest cent, the answer is $27.18.

So, the correct answer is $27.18.