Calculate the interest due on the following credit card balances.
a)An unpaid balance of $1623.53 at a rate of 19.50% for 21 days.
b)An unpaid balance of 2639.99 at a rate of 22.95% for 30 days.
To calculate the interest due on credit card balances, you need to multiply the unpaid balance by the daily interest rate, and then multiply that by the number of days.
a) For the first scenario, we have an unpaid balance of $1623.53 at a rate of 19.50% for 21 days.
Step 1: Convert the annual interest rate to a daily rate.
To do this, divide the annual interest rate by 365 (the number of days in a year).
Daily interest rate = 19.50% / 365 = 0.0534247%
Step 2: Calculate the interest amount by multiplying the unpaid balance by the daily interest rate, and then by the number of days.
Interest due = $1623.53 * 0.000534247 * 21
Interest due ≈ $18.28
Therefore, the interest due on an unpaid balance of $1623.53 at a rate of 19.50% for 21 days is approximately $18.28.
b) For the second scenario, we have an unpaid balance of $2639.99 at a rate of 22.95% for 30 days.
Step 1: Convert the annual interest rate to a daily rate.
Daily interest rate = 22.95% / 365 = 0.0630137%
Step 2: Calculate the interest amount by multiplying the unpaid balance by the daily interest rate, and then by the number of days.
Interest due = $2639.99 * 0.000630137 * 30
Interest due ≈ $50.32
Therefore, the interest due on an unpaid balance of $2639.99 at a rate of 22.95% for 30 days is approximately $50.32.