Bob's car needs a new transmission, a repair that will cost $1,763.00. Bob does not have enough money in his savings account to cover the cost of the repair. To make matters worse, Bob's mechanic, who works out of his home, is unable to accept credit cards. Bob is hesitant to take out a cash advance on his credit card knowing that it will take him 12 months to pay of the balance and that a cash advance comes with a 30% interest rate. If Bob uses a cash advance to pay for the repairs, how much extra will he have to pay in interest? Answer is $299.44

Question

Mathematics

Lilia Sheppard

24 December, 05:04

Bob's car needs a new transmission, a repair that will cost $1,763.00. Bob does not have enough money in his savings account to cover the cost of the repair. To make matters worse, Bob's mechanic, who works out of his home, is unable to accept credit cards. Bob is hesitant to take out a cash advance on his credit card knowing that it will take him 12 months to pay of the balance and that a cash advance comes with a 30% interest rate. If Bob uses a cash advance to pay for the repairs, how much extra will he have to pay in interest? Answer is $299.44

+2

Answers (2)

Know the Answer?

Obie · Answer 1

Its C, I just took the practice.

Cocoa · Answer 2

To determine the extra amount that Bob will have to pay for the car if he used credit card, we multiply the amount he has to pay by the decimal equivalent of the percentage given. That is,

extra amount = ($1763.00) x (0.30)

= $528.9

Thus, the extra amount that has to be paid due to interest rate is approximately $528.9.