a customer receives a new credit card and makes the following transactions. a cash advance of $1000 on october 10. she then makes $2000 purchase between october 12 and october 21. her due date on the bill is november 3 and yearly interest rate is 18%. interest is only on cash advances and overdue payments. how much does she owe?
plz help with this question its due very soon and i cant get the answer. Thank u
$3012.33
You must take the advance times the interest, times the time.
1000(0.18)(24/365)
= 1000(0.18)(0.065753424)
= 1000(0.011835616)
= 11.8356164 so approximately, 11.84
now add $11.84 (interest) to $1000 (the advance), as well as the $2000 purchase. and we get $3011.84.
So $3011.84 is our answer!!!
How did you get this answer?
Not sure if this is correct, but here is what I did.
I=P*r*t
Interest = Principal amount of money borrowed * annual interest Rate charged as a decimal * the length of Time of the loan(can be in months or years)
31 days in October - 10 days = 21 days
21 + 3 days in November = 24 days
I = 1000(0.18)(24/365)(24/265)
Interest = $65.75
$1000 + $65.75 + $2000 = $3065.75 owed on credit card.
To determine the amount owed, we need to calculate the interest on the cash advance and check if any payment is overdue. Let's break it down step by step:
1. Cash advance on October 10: The customer took a cash advance of $1000. Since interest is charged on cash advances, we need to calculate the interest for the period from October 10 to the due date (November 3). To calculate the interest, we need to know the daily interest rate. Since the yearly interest rate is 18%, the daily interest rate can be found by dividing the yearly rate by the number of days in a year.
Daily interest rate = Annual interest rate / 365
Daily interest rate = 18% / 365 = 0.0493%
The number of days from October 10 to November 3 is 24 days.
Interest on cash advance = Cash advance amount * Daily interest rate * Number of days
Interest on cash advance = $1000 * 0.0493% * 24 = $11.83 (rounded to the nearest cent)
2. Purchase between October 12 and October 21: The customer made a $2000 purchase during this period. Since interest is not charged on regular purchases within this billing cycle, there is no interest to be added for this transaction.
3. Due date and overdue payment: The due date on the bill is November 3, and interest is charged on overdue payments. If the customer doesn't make the full payment by the due date, any remaining balance will incur interest until it is fully paid.
To determine if any payment is overdue, we need to compare the due date with the current date. If the current date is after the due date, then the bill is overdue and will incur interest. If the payment is made on or before the due date, no overdue interest is accrued.
Now, to calculate the total amount owed due to the cash advance and potential overdue payment interest, we add the interest on the cash advance to the initial cash advance amount:
Total amount owed = Cash advance amount + Interest on cash advance
Total amount owed = $1000 + $11.83 = $1011.83
So, the customer owes a total of $1011.83.
Remember to confirm the final answer with the latest information from your credit card statement and consult with a financial advisor if you have any specific concerns regarding your credit card payments.
Well, well, well, it seems like someone has fallen into the credit card labyrinth! Don't worry, my friend, Clown Bot is here to guide you through the land of numbers with a chuckle or two.
Let's break it down. The customer made a cash advance of $1000 on October 10. So, that's our first transaction!
Next, our lovely customer made a purchase of $2000 between October 12 and October 21. Great, we got another one! Bravo!
Now, the due date on the bill is November 3, right? And the annual interest rate is 18%, you say? Remember, interest is only on cash advances and overdue payments. So, let's calculate that, shall we?
To calculate the interest on the cash advance, we simply multiply it by the interest rate: $1000 x 18% = $180. We have our first interest fee, ladies and gentlemen!
Now, let's see if our customer is prompt with her payments. If she pays the entire balance before the due date, she won't accumulate any interest from the purchase. But if she doesn't, ah well, interest will come knocking on her door!
So, my friend, it all comes down to whether she clears the balance before November 3. If she does, the amount she owes will be $2180 ($1000 cash advance + $2000 purchase). But if she doesn't, she'll have to add that $180 interest fee to the mix.
I hope that helps, my friend! Remember, laughter is the best payment to any situation, so stay cheerful and tackle those numbers like a juggling clown! Good luck! 🤡