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Sagot :
Answer:
a. Jack's monthly periodic rate = 1%
b. Jill's monthly periodic rate = 1.75%
c. Amount paid more by Jill than Jack = $5.25
Step-by-step explanation:
a. Jack was approved for a card with an APR of 12%. What was his monthly periodic rate?
Jack's monthly periodic rate = Jack's annual percentage rate (APR) / Number of months in a year = 12% / 12 = 1%
b. Jill was approved for a card with an APR of 21%. What was her monthly periodic rate?
Jill's monthly periodic rate = Jill's APR / Number of months in a year = 21% / 12 = 1.75%
c. If each of them had an average daily balance of $700 and had to pay a finance charge, how much MORE will Jill pay than Jack?
Jack's finance charge = Jack's monthly periodic rate * Average daily balance = 1% * $700 = $7
Jill's finance charge = Jill's monthly periodic rate * Average daily balance = 1.75% * $700 = $12.25
Amount paid more by Jill than Jack = Jill's finance charge - Jack's finance charge = $12.25 - $7 = $5.25
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