a consumer charges a $2,530.16 purchase on a credit card. the card has a daily interest rate of 0.042%. if…

a consumer charges a $2,530.16 purchase on a credit card. the card has a daily interest rate of 0.042%. if the balance is paid off at the end of 30 days, how much interest will the consumer pay?\na. $0.32\nb. $3.19\nc. $31.88\nd. $318.78\nplease select the best answer from the choices provided\no a\no b\no c\no d

a consumer charges a $2,530.16 purchase on a credit card. the card has a daily interest rate of 0.042%. if the balance is paid off at the end of 30 days, how much interest will the consumer pay?\na. $0.32\nb. $3.19\nc. $31.88\nd. $318.78\nplease select the best answer from the choices provided\no a\no b\no c\no d

Answer

Explanation:

Step1: Convert daily - interest rate to decimal

The daily interest rate is $0.042%$, which in decimal form is $0.00042$ (since $0.042%=\frac{0.042}{100}=0.00042$).

Step2: Calculate total interest

The formula for simple - interest is $I = P\times r\times t$, where $P$ is the principal amount, $r$ is the daily interest rate, and $t$ is the number of days. Here, $P = 2530.16$, $r=0.00042$, and $t = 30$. $I=2530.16\times0.00042\times30$ $I = 2530.16\times0.0126$ $I=31.879016\approx31.88$

Answer:

C. $31.88$