If the interest rate is 15.5%, how much interest will she pay per year?

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SUMMARY

Carmel owes $2902.40 on her bankcard and will pay $449.87 in interest annually at an interest rate of 15.5%. For a 30-day month, she will incur $1.23 in interest, calculated at a daily rate of 0.04246%. After making a $500 payment on July 15, her remaining balance of $2402.40 will accrue interest for the remaining 16 days of the month, resulting in an additional interest charge of $0.89.

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Stealthdoze
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Carmel owes $2902.40 on her bankcard.

(a) If the interest rate is 15.5%, how much interest will she pay per year?
(b) Interest is calculated dail at 0.04246% and charged monthly. How much will Carmel pay for a 30day month?
(c)If she pays $500 off her bankcard bill on 15th July, how much interest will she pay for this month?

I've figured out a, b.
 
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Stealthdoze said:
Carmel owes $2902.40 on her bankcard.

(a) If the interest rate is 15.5%, how much interest will she pay per year?
(b) Interest is calculated dail at 0.04246% and charged monthly. How much will Carmel pay for a 30day month?
(c)If she pays $500 off her bankcard bill on 15th July, how much interest will she pay for this month?

I've figured out a, b.

She owes 0.04246% on the entire $2902.40 for 15 days. How much interest is that for each day (0.00044246*2902.4). How much is that for 15 days?

She owes 0.04246% on the remaining $2902.40- 500= $2402.40 for the remaining 16 days.

I'm moving this to the "homework help" thread.
 
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