Suppose a card is offered with a 0% introductory rate. A student decided to get the credit card and immediately took a cash advance of $896. The cash advance had a 24% annual rate which started immediately. The account also had a $40 late fee with any late payment. If the student missed making the first month's payment, what will be their new total balance at the start of the second month?
nitially, the balance would be 896(thecashadvanceamount).Addingthe40 late fee and the interest charge for the first month (896∗24NewBalance=896 + 40+(896 * (24% / 12)) ≈ $976.73
