The opening balance of one of the 31-day billing cycles for Lorenzo's credit card was $4100, but after 15 days Lorenzo made a payment of $2300 to decrease his balance, and it stayed the same for the remainder of the billing cycle. If his credit card's APR is 24%, how much more in interest would he pay for the billing cycle with the previous balance method than with the adjusted balance method?

A.$120.26

B.$83.57

C.$36.69

D.$46.88

Question

Bradyn Braun

Mathematics

6 June, 02:31

The opening balance of one of the 31-day billing cycles for Lorenzo's credit card was $4100, but after 15 days Lorenzo made a payment of $2300 to decrease his balance, and it stayed the same for the remainder of the billing cycle. If his credit card's APR is 24%, how much more in interest would he pay for the billing cycle with the previous balance method than with the adjusted balance method?

A.$120.26

B.$83.57

C.$36.69

D.$46.88

+2

Answers (1)

Know the Answer?

Tatum · Answer 1

Method 1

7,400*0.22 * (31:365) = 138.27

Method 2

7,500*0.22 * (15:365) + 2,500

*0.22 * (16:365) = 91.91

How much more

138.27-91.92=46.35

The answer is D

46.35 because I rounded the answer in the method 1