Tammy got a new credit card with an APR of 21% a month ago, and she just got her first credit card statement. She charged a bracelet for $17, a purse for $36, and some sunglasses for $11. If her credit card charges interest on the previous monthly balance, how much should Tammy pay now so that she doesn't have any interest charged to her on next month's statement

Question

Mathematics

Payten Barr

15 January, 10:43

Tammy got a new credit card with an APR of 21% a month ago, and she just got her first credit card statement. She charged a bracelet for $17, a purse for $36, and some sunglasses for $11. If her credit card charges interest on the previous monthly balance, how much should Tammy pay now so that she doesn't have any interest charged to her on next month's statement

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Walter Dawson · Answer 1

Tammy has charged $17 + $36 + $11 = $64 in total.

So Tammy has to pay $64 before she have interest charged to her.

If the APR is 21% then monthly interest is 21% / 12 = 1.75%

So if she don't pay those $64 by the end of month, she will have to pay $64 + $64 * 0.0175 = $64 + $1.12 = $65.12.