Everett has a credit card that uses the adjusted balance method. For the first 10 days of one of his 30-day billing cycles, his balance was $3100. He then made a payment of $1900, so his balance decreased to $1200, and it remained that amount for the next 10 days, Everett then made a new purchase for $700. His balance for the last 10 days of the billing cycle was $1900. If his credit card's APR is 34% how much was Everett charged in interest for the billing cycle?

Question

Jamari Nash

Mathematics

30 May, 08:31

Everett has a credit card that uses the adjusted balance method. For the first 10 days of one of his 30-day billing cycles, his balance was $3100. He then made a payment of $1900, so his balance decreased to $1200, and it remained that amount for the next 10 days, Everett then made a new purchase for $700. His balance for the last 10 days of the billing cycle was $1900. If his credit card's APR is 34% how much was Everett charged in interest for the billing cycle?

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Answers (2)

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Kylie Schmidt · Answer 1

It’s 3100-1900=1200+700=1900

APR - 34% so 34/12 = 2.83%

2.83% (1900) = 53.833

So he was charged by 53.833

The total amount he paid for billing cycle is 1900 + 53.833=1953.833

Sam Rowe · Answer 2

It would be negitive 1400 because 3100-1900+10-70=-1400 because he spent a 3third of his balance