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Looking for some furniture for her new apartment, Susan visits the local swap meet in search of something cheap. Knowing that most swap meet vendors will not accept credit cards and that she will not have any money until her next payday, Susan decides to take out a $200 cash advance on her credit card at an interest rate of 32%.

If Susan had no previous balance on her credit card, and she manages to pay off the balance within 1 month, how much will she have to pay in interest?
a. $5.33
b. $32.00
c. $173.33
d. $205.33

Respuesta :

Aliwohaish12
Use the simple interest formula
I=prt
I interest paid?
P cash advance 200
R interest rate 0.32
T time 1month/12months
So
I=200×0.32×(1÷12)
I=5.33

It's a

The amount that she will have to pay in interest is;

A: $5.33

What is the simple interest?

Formula for simple interest is;

I = PRT

Where;

P is principal

R is interest rate

T is time

We are given;

Cash advance; P = $200

Interest rate; R = 0.32

Time; T = 1month = 1/12 Year

Thus;

I = 200 × 0.32 × (1/12)

I = $5.33

Read more about Simple interest at; https://brainly.com/question/20690803

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