Cynthia had a credit card with a 17% APR and a $3,265 balance. She had budgeted to have the credit card paid off in 24 months. But after missing a single monthly payment, Cynthia’s credit card company has increased her interest rate to 21%. How much extra will Cynthia have to pay in finance charges (interest) because of the increase in her APR if she still pays off the credit card in 24 months?
a. $152.16

b. $272.08

c. $609.32

d. $761.48

Question

contestada

Respuesta :

josephlacombe josephlacombe · Answer 1 · 2019-04-09T00:15:59+02:00

Answer:

The answer is A $152.16

Brainliest please

Step-by-step explanation:

Answer Link

abiolataiwo2015 abiolataiwo2015 · Answer 2 · 2022-03-30T15:51:25+02:00

The amount extra that Cynthia will have to pay in finance charges is: a. $152.16.

Finance charges can be defined as the way in which a lender is being compensated for lending out to a borrower.

First step

p = 3265

r = 17%=17%/12/100=0.014166

n = 24

EMI=3265×0.014166×(1+0.014166)^24÷(1+0.014166)^24-1

EMI=3265×0.014166×(1.014166)^24÷(1.014166)^24-1

EMI=$161.43

Second step

p = 3265

r = 21%=21%/12/100=0.0175

n = 24

EMI=3265×0.0175×(1+0.0175)^24÷(1+0.0175)^24-1

EMI=3265×0.0175×(1.0175)^24÷(1.0175)^24-1

EMI=$167.77

Third step

Difference=$167.77-$161.43

Difference=$6.34

Finance charges=24 months×$6.34

Finance charges=$152.16

Inconclusion the amount extra that Cynthia will have to pay in finance charges is: a. $152.16.

Learn more about finance charges here:https://brainly.com/question/4403314