Rita has a credit card that gives a 6% discount on every purchase. The annual percentage rate on the card is 15%. She is purchasing a digital camera for $300. If she purchases the camera and only pays $80 on the first month's bill, how much will she need to pay off the balance the following month?

$199.47

$204.53

$220.00

$222.75

Question

Malia House

Mathematics

5 January, 13:45

Rita has a credit card that gives a 6% discount on every purchase. The annual percentage rate on the card is 15%. She is purchasing a digital camera for $300. If she purchases the camera and only pays $80 on the first month's bill, how much will she need to pay off the balance the following month?

$199.47

$204.53

$220.00

$222.75

+2

Answers (1)

Know the Answer?

Lennon · Answer 1

To find percentage rate per month, 15/12 = 1.25%

To apply the 6% discount:

300 x. 94 = 282

282 - 80 = 202

Now apply the 1.25% rate

202 x 1.0125 = $204.53