4. andrea’s monthly statement shows a previous balance of $1560.50. during the month, she made a payment of…

4. andrea’s monthly statement shows a previous balance of $1560.50. during the month, she made a payment of $800 and purchased goods totalling $750.99. if andrea earns an interest rate of 18% on any balance owing at the end of this month (30 days), what will she be paying interest?

4. andrea’s monthly statement shows a previous balance of $1560.50. during the month, she made a payment of $800 and purchased goods totalling $750.99. if andrea earns an interest rate of 18% on any balance owing at the end of this month (30 days), what will she be paying interest?

Answer

Explanation:

Step1: Calculate the balance before interest

First, find the balance after payment and purchases. Subtract the payment from the previous - balance and add the purchases. $1560.50 - 800+750.99$ $=760.50 + 750.99$ $=1511.49$

Step2: Calculate the monthly interest rate

The annual interest rate is 18%. To find the monthly interest rate, divide the annual interest rate by 12. Monthly interest rate $r=\frac{18%}{12}=1.5% = 0.015$

Step3: Calculate the interest amount

Multiply the balance before interest by the monthly interest rate. Interest amount $I = 1511.49\times0.015$ $I=22.67235\approx22.67$

Answer:

$22.67$