Calculate the interest due on the following credit card balances:
A. An unpaid balance of $1629.53 at a rate of 19.50% for 21 days; and
B. An unpaid balance of $2639.99 at a rate of 22.95% for 30 days.
Thanks
To calculate the interest due on your credit card balances, you need to consider the principal balance, interest rate, and the number of days.
A. For an unpaid balance of $1629.53 at a rate of 19.50% for 21 days:
Step 1: Convert the interest rate to a decimal by dividing it by 100.
19.50% = 0.195
Step 2: Calculate the daily interest rate by dividing the annual interest rate by 365.
0.195 / 365 = 0.00053425
Step 3: Multiply the principal balance by the daily interest rate.
$1629.53 * 0.00053425 = $0.87 (rounded to the nearest cent)
Therefore, the interest due on this balance would be $0.87.
B. For an unpaid balance of $2639.99 at a rate of 22.95% for 30 days:
Step 1: Convert the interest rate to a decimal by dividing it by 100.
22.95% = 0.2295
Step 2: Calculate the daily interest rate by dividing the annual interest rate by 365.
0.2295 / 365 = 0.00062877
Step 3: Multiply the principal balance by the daily interest rate.
$2639.99 * 0.00062877 = $1.66 (rounded to the nearest cent)
Therefore, the interest due on this balance would be $1.66.
To calculate the interest due on the credit card balances, we can use the formula:
Interest Due = (Unpaid Balance * Daily Interest Rate * Number of Days)
A. For the first case, we have:
Unpaid Balance = $1629.53
Annual Interest Rate = 19.50%
Number of Days = 21
To find the daily interest rate, we divide the annual interest rate by 365 (assuming a year has 365 days):
Daily Interest Rate = 19.50% / 365 = 0.0005342
Now, let's calculate the interest due:
Interest Due A = ($1629.53 * 0.0005342 * 21) = $18.5539610366
Therefore, the interest due on the first credit card balance is approximately $18.55.
B. For the second case, we have:
Unpaid Balance = $2639.99
Annual Interest Rate = 22.95%
Number of Days = 30
To find the daily interest rate:
Daily Interest Rate = 22.95% / 365 = 0.0006288
Now, let's calculate the interest due:
Interest Due B = ($2639.99 * 0.0006288 * 30) = $49.64620624
Therefore, the interest due on the second credit card balance is approximately $49.65.
In summary:
A. Interest Due = $18.55
B. Interest Due = $49.65
A) $1629.53 x 0.195 x 21/365 = $18.28
B) $2639. 99 * .2295 * 30/365 = $49.80