Sidney took a cash advance of $550 by using checks linked to her credit card account. The bank charges a cash advance fee of 3 percent on the amount borrowed and offers no grace period on cash advances. Sidney paid the balance in full when the bill arrived.

What was the cash advance fee? (Round your answer to 2 decimal places.)

Question

Business

Hassan Ewing

4 March, 09:16

Sidney took a cash advance of $550 by using checks linked to her credit card account. The bank charges a cash advance fee of 3 percent on the amount borrowed and offers no grace period on cash advances. Sidney paid the balance in full when the bill arrived.

What was the cash advance fee? (Round your answer to 2 decimal places.)

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Answers (1)

Know the Answer?

Chelsea · Answer 1

The answer is $16.50

Explanation:

A cash advance from a credit card means you are borrowing money from your credit card company. They will lend you the money but they will charge you a cash advance fee on the amount you borrowed. Since the company does not offer a grace period on cash advances, they you will have to pay the fee even if you pay off your loan the same day.

To know how to get to the answer, you need to know that a percentage means a part of a 100th. in this case, 3% means 3/100, 3 out of 100, if you divide it you get. 03 and if you multiply that by the dollar ammount you borrowed, you get the 3% of the total. So,.03x$550=$16.50 and that is the 3% of $550.

How can you check if your math is correct? You can do a rule of three. If 550 equals 100%, then how much is 3%? 3x550/100=16.50