Answered

Jerome's credit card has an APR of [tex]$18\%$[/tex], calculated on the previous monthly balance, and a minimum payment of [tex]$2\%$[/tex], starting the month after the first purchase. His credit card record for the last 7 months is shown in the table below.

\begin{tabular}{ccccccc}
\hline
\begin{tabular}{c}
End of \\
month
\end{tabular} & \begin{tabular}{c}
Previous \\
balance
\end{tabular} & \begin{tabular}{c}
New \\
charges
\end{tabular} & \begin{tabular}{c}
Payment \\
received
\end{tabular} & \begin{tabular}{c}
Finance \\
charges
\end{tabular} & \begin{tabular}{c}
Principal \\
paid
\end{tabular} & \begin{tabular}{c}
New \\
balance
\end{tabular} \\
\hline
1 & \[tex]$0.00 & \$[/tex]2200.00 & \[tex]$0.00 & \$[/tex]0.00 & \[tex]$0.00 & \$[/tex]2200.00 \\
2 & \[tex]$2200.00 & \$[/tex]0.00 & \[tex]$44.00 & \$[/tex]33.00 & \[tex]$11.00 & \$[/tex]2189.00 \\
3 & \[tex]$2189.00 & \$[/tex]0.00 & \[tex]$43.78 & \$[/tex]32.84 & \[tex]$10.95 & \$[/tex]2178.06 \\
4 & \[tex]$2178.06 & \$[/tex]0.00 & \[tex]$43.56 & \$[/tex]32.67 & \[tex]$10.89 & \$[/tex]2167.16 \\
5 & \[tex]$2167.16 & \$[/tex]0.00 & \[tex]$43.34 & \$[/tex]32.51 & \[tex]$10.84 & \$[/tex]2156.33 \\
6 & \[tex]$2156.33 & \$[/tex]0.00 & \[tex]$43.13 & \$[/tex]32.34 & \[tex]$10.78 & \$[/tex]2145.55 \\
7 & \[tex]$2145.55 & \$[/tex]0.00 & \[tex]$42.91 & \$[/tex]32.18 & \[tex]$10.73 & \$[/tex]2134.82 \\
\hline
\end{tabular}

What is the total amount that Jerome has paid in interest over the 7 months?

A. \[tex]$195.54

B. \$[/tex]260.72

C. \[tex]$32.18

D. \$[/tex]65.18



Answer :

GinnyAnswer
To determine the total amount that Jerome has paid in interest over the 7 months, we need to look at the "Finance charges" column of the provided table. The finance charges represent the interest fees Jerome has been charged each month.

Here is the breakdown of the finance charges over the 7 months:

1. Month 1: \[tex]$0.00 2. Month 2: \$[/tex]33.00
3. Month 3: \[tex]$32.84 4. Month 4: \$[/tex]32.67
5. Month 5: \[tex]$32.51 6. Month 6: \$[/tex]32.34
7. Month 7: \[tex]$32.18 To find the total amount paid in interest, we need to sum these finance charges. Adding them up: \[ 0.00 + 33.00 + 32.84 + 32.67 + 32.51 + 32.34 + 32.18 = 195.54 \] Thus, the total amount that Jerome has paid in interest over the 7 months is: \[ \$[/tex]195.54 \]

The correct answer is:

A. \$195.54