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

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  1. $3012.33

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  2. How did you get this answer?

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  3. Not sure if this is correct, but here is what I did.

    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.

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  4. You must take the advance times the interest, times the time.

    = 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!!!

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