Answered

Jerome's credit card has an APR of 18%, calculated on the previous monthly balance, and a minimum payment of 2%, 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?



Answer :

GinnyAnswer
To find out the total amount Jerome has paid in interest over the 7 months, we'll follow these steps based purely on the provided information:

1. Identify the finance charges for each month:
- Month 1: \[tex]$0.00 - Month 2: \$[/tex]33.00
- Month 3: \[tex]$32.84 - Month 4: \$[/tex]32.67
- Month 5: \[tex]$32.51 - Month 6: \$[/tex]32.34
- Month 7: \[tex]$32.18 2. Sum the interest charges: - Add up the charges from each month. 3. Calculate the total interest paid: - By adding up all the finance charges, the result is the total interest Jerome has paid. The interest amounts from each month are: \[ 0.00 + 33.00 + 32.84 + 32.67 + 32.51 + 32.34 + 32.18 = 195.54 \] Therefore, the total amount Jerome has paid in interest over the 7 months is \$[/tex]195.54.