Armando has a credit card that uses the adjusted balance method. For the first 10 days of one of his 30-day billing cycles, his balance was $2500. He then made a payment of $1600, so his balance decreased to $900, and it remained that amount for the next 10 days. Armando then made a purchase for $1300, so his balance for the last 10 days of the billing cycle was $2200. If his credit card's APR is 33%, how much was Armando charged in interest for the billing cycle?

Question

Mathematics

Amira

20 October, 03:23

Armando has a credit card that uses the adjusted balance method. For the first 10 days of one of his 30-day billing cycles, his balance was $2500. He then made a payment of $1600, so his balance decreased to $900, and it remained that amount for the next 10 days. Armando then made a purchase for $1300, so his balance for the last 10 days of the billing cycle was $2200. If his credit card's APR is 33%, how much was Armando charged in interest for the billing cycle?

+5

Answers (1)

Know the Answer?

Alfredo Fitzpatrick · Answer 1

Everett has a credit card that uses the adjusted balance method.

For the first 10 days of one of his 30-day billing cycles, his balance was $3100.

He then made a payment of $1900, so his balance decreased to $1200,

and it remained that amount for the next 10 days,

Everett then made a new purchase for $700.

His balance for the last 10 days of the billing cycle was $1900.

If his credit card's APR is 34%

how much was Everett charged in interest for the billing cycle?

Interest for $3100 for 10 days = $29.28

Interest for $1200 for 10 days = $11.33

Interest for $1900 for 10 days = $17.94