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Interest Question

sillypoodle

New member
Apr 18, 2020
1
.A certain credit card company charges interest at 18¾% p.a. Reza D. had an outstanding balance of $686.25 on his credit card for 35 days, at which time he paid everything that he owed to the company. How much interest did Reza have to pay, and how much did he pay in total?
 

skeeter

Well-known member
MHB Math Helper
Mar 1, 2012
644
.A certain credit card company charges interest at 18¾% p.a. Reza D. had an outstanding balance of $686.25 on his credit card for 35 days, at which time he paid everything that he owed to the company. How much interest did Reza have to pay, and how much did he pay in total?
link to the compound interest formula ...

Compound Interest


FYI, credit card companies usually charge interest compounded daily. Some use 360 days in a year to slightly increase their interest charge.