cynthia had a credit card with a 17% apr and a $3,265 balance. she had budgeted to have the credit card paid…

Answer:

B. $272.08

Explanation:

Step1: Calculate monthly - interest rate for 17% APR

Monthly rate $r_1=\frac{0.17}{12}$

Step2: Calculate total interest for 17% APR over 24 months

Using simple - interest formula for each month and summing up. The balance $P = 3265$. The total interest $I_1$ is calculated as follows: The interest in the first month is $I_{11}=P\times r_1$, in the second month is $I_{12}=(P - \text{monthly payment})\times r_1$, but using the simple - interest approximation for the total interest over 24 months $I_1=P\times r_1\times24=3265\times\frac{0.17}{12}\times24 = 3265\times0.17\times2= 1100.1$

Step3: Calculate monthly - interest rate for 21% APR

Monthly rate $r_2=\frac{0.21}{12}$

Step4: Calculate total interest for 21% APR over 24 months

Using the same approach as in Step 2, the total interest $I_2$ is $I_2=P\times r_2\times24=3265\times\frac{0.21}{12}\times24=3265\times0.21\times2 = 1372.18$

Step5: Calculate the extra interest

Extra interest $=I_2 - I_1=1372.18-1100.1 = 272.08$