Reza D. incurred interest charges on an outstanding credit card balance of $686.25 at an annual interest rate of 18¾% for a duration of 35 days. The interest calculation, based on the daily compounding method, resulted in a total interest payment of approximately $10.70. Consequently, Reza's total payment to the credit card company amounted to $696.95, which includes both the principal and the accrued interest.
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sillypoodle said:.A certain credit card company charges interest at 18¾% p.a. Reza D. had an outstanding balance of $686.25 on his credit card for 35 days, at which time he paid everything that he owed to the company. How much interest did Reza have to pay, and how much did he pay in total?