Question

Jean forgot to pay her credit card bill. People who don’t pay their credit card bills on time, have to pay hefty interest charges! Her credit card company charges no interest if bills are paid on time, but it charges 22% if the bill is late (even if it is only 1 day!). When she paid the bill,
with interest, she paid $756.40. What was the bill before she missed her payment? How much money did she lose because of this mistake?

Answer 1

Answer:

$756.40 total including interest of 22%

When talking about money, 22% is written as 0.22

To find out what amount of the total is the 22% or 0.22, you will need to multiply.

$756.49 x 0.22 = $166.408 rounded up is $166.41

$166.41 is the 22% interest. Minus that from the total and it will give you the bill amount before Interest was added.

$756.40 - $166.41 = $589.99