a primary credit cardholders card has an apr of 24.99%. the current monthly balance, before interest, is…

a primary credit cardholders card has an apr of 24.99%. the current monthly balance, before interest, is $3,476.25. if the balance is paid off after one month of interest charges, how much more will have been paid instead of using cash? $868.71 $86.87 $724.80 $72.39

a primary credit cardholders card has an apr of 24.99%. the current monthly balance, before interest, is $3,476.25. if the balance is paid off after one month of interest charges, how much more will have been paid instead of using cash? $868.71 $86.87 $724.80 $72.39

Answer

Explanation:

Step1: Convert APR to monthly rate

The APR (Annual Percentage Rate) is (24.99%=0.2499). The monthly interest rate (r) is (\frac{0.2499}{12}).

Step2: Calculate the interest charged

The formula for simple - interest is (I = Prt), where (P=$3476.25) (principal amount, the balance before interest), (r=\frac{0.2499}{12}) (monthly interest rate), and (t = 1) (time in months). [I=3476.25\times\frac{0.2499}{12}\times1] [I = 3476.25\times0.020825] [I=72.39]

Answer:

($72.39)