Answered

Westonci.ca is the best place to get answers to your questions, provided by a community of experienced and knowledgeable experts. Join our Q&A platform to connect with experts dedicated to providing precise answers to your questions in different areas. Connect with a community of professionals ready to help you find accurate solutions to your questions quickly and efficiently.

Jeremiah's credit card has an APR of [tex]22 \%[/tex] calculated on the previous monthly balance. His credit card record for the last 7 months is shown in the table below.

\begin{tabular}{ccccccc}
\hline \begin{tabular}{c}
End of \\
Month
\end{tabular} & \begin{tabular}{c}
Previous \\
Balance
\end{tabular} & \begin{tabular}{c}
New \\
Charges
\end{tabular} & \begin{tabular}{c}
Payment \\
Received
\end{tabular} & \begin{tabular}{c}
Finance \\
Charges
\end{tabular} & \begin{tabular}{c}
Principal \\
Paid
\end{tabular} & \begin{tabular}{c}
New \\
Balance
\end{tabular} \\
\hline
1 & \[tex]$0.00 & \$[/tex]255.87 & \[tex]$0.00 & \$[/tex]0.00 & \[tex]$0.00 & \$[/tex]255.87 \\
2 & \[tex]$255.87 & \$[/tex]156.83 & \[tex]$120.00 & \$[/tex]4.69 & \[tex]$115.31 & \$[/tex]297.39 \\
3 & \[tex]$297.39 & \$[/tex]96.96 & \[tex]$80.00 & \$[/tex]5.45 & \[tex]$74.55 & \$[/tex]319.80 \\
4 & \[tex]$319.80 & \$[/tex]133.05 & \[tex]$140.00 & \$[/tex]5.86 & \[tex]$134.14 & \$[/tex]318.72 \\
5 & \[tex]$318.72 & \$[/tex]267.42 & \[tex]$60.00 & \$[/tex]5.84 & \[tex]$54.16 & \$[/tex]531.98 \\
6 & \[tex]$531.98 & \$[/tex]78.91 & \[tex]$160.00 & \$[/tex]9.75 & \[tex]$150.25 & \$[/tex]460.64 \\
7 & \[tex]$460.64 & \$[/tex]301.48 & \[tex]$220.00 & \$[/tex]8.45 & \[tex]$211.55 & \$[/tex]550.57 \\
\hline
\end{tabular}

On what amount of money will Jeremiah be charged interest for month 8?

A. \$220.00
B. \$460.64
C. \$550.57
D. \$301.48

Sagot :

GinnyAnswer
To determine the amount of money on which Jeremiah will be charged interest for month 8, we need to understand the system of calculating interest. Interest is typically calculated based on the previous month's balance.

Given the table, here is a summary of the transactions for month 7:

- Previous Balance: \$460.64
- New Charges: \$301.48
- Payment Received: \$220.00
- Finance Charges: \$8.45
- Principal Paid: \$211.55
- New Balance: \$550.57

To find the answer, we need to focus on the "New Balance" at the end of month 7, because this balance is what will be carried over into month 8 and used to calculate the interest.

So, Jeremiah will be charged interest on the "New Balance" at the end of month 7, which is:

C. \$550.57
Thank you for choosing our platform. We're dedicated to providing the best answers for all your questions. Visit us again. Thanks for stopping by. We strive to provide the best answers for all your questions. See you again soon. We're glad you chose Westonci.ca. Revisit us for updated answers from our knowledgeable team.