Question

Looking for some furniture for her new apartment, Susan visits the local swap meet in search of something cheap. Knowing that most swap meet vendors will not accept credit cards and that she will not have any money until her next payday, Susan decides to take out a $200 cash advance on her credit card at an interest rate of 32%.

If Susan had no previous balance on her credit card, and she manages to pay off the balance within 1 month, how much will she have to pay in interest?
a.
$5.33
b.
$32.00
c.
$173.33
d.
$205.33

Answer 1

I believe the answer is A.

Answer 2

1. The amount that she will have to pay in interest is: A: $5.33

Simple interest

Using this formula

I = PRT

Where:

P=principal= $200

R=interest rate=0.32

T= time=1month = 1/12 Year

Let plug in the formula

Interest= 200 × 0.32 × (1/12)

Interest= $5.33

Inconclusion the amount that she will have to pay in interest is: A: $5.33

Learn more about simple interest here:https://brainly.com/question/4291070