Phillip charged $400 worth of goods on his credit card. On his first bill, he was not charged any interest, and he made a payment of $20. He then charged another $18 worth of goods. On his second bill a month later, he was charged 2% interest on his entire unpaid balance. How much interest was Phillip charged on his second bill?
okay, so I know the answer is $7.96, but I have no idea how to get that answer... can someone please explain how to get the answer???
thanks! :)
okay, so I know the answer is $7.96, but I have no idea how to get that answer... can someone please explain how to get the answer???
thanks! :)
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You need to find the unpaid balance.
Started with 400
paid 20, 380
spend 18, 398
398 is the unpaid balance.
2% of this is .02*398=7.96
Started with 400
paid 20, 380
spend 18, 398
398 is the unpaid balance.
2% of this is .02*398=7.96
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I would imagine
$400 less the $20 = $380 New Balance - No Charge
$380 + $18 = $398 New Balance or entire balance.
The interest on this entire balance is at 2%. So $398 x 2% or $398 x 0.02 = $7.96
$400 less the $20 = $380 New Balance - No Charge
$380 + $18 = $398 New Balance or entire balance.
The interest on this entire balance is at 2%. So $398 x 2% or $398 x 0.02 = $7.96