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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]$\$[/tex] 0.00[tex]$ & $[/tex]\[tex]$ 2200.00$[/tex] & [tex]$\$[/tex] 0.00[tex]$ & $[/tex]\[tex]$ 0.00$[/tex] & [tex]$\$[/tex] 0.00[tex]$ & $[/tex]\[tex]$ 2200.00$[/tex] \\
2 & [tex]$\$[/tex] 2200.00[tex]$ & $[/tex]\[tex]$ 0.00$[/tex] & [tex]$\$[/tex] 44.00[tex]$ & $[/tex]\[tex]$ 33.00$[/tex] & [tex]$\$[/tex] 11.00[tex]$ & $[/tex]\[tex]$ 2189.00$[/tex] \\
3 & [tex]$\$[/tex] 2189.00[tex]$ & $[/tex]\[tex]$ 0.00$[/tex] & [tex]$\$[/tex] 43.78[tex]$ & $[/tex]\[tex]$ 32.84$[/tex] & [tex]$\$[/tex] 10.95[tex]$ & $[/tex]\[tex]$ 2178.06$[/tex] \\
4 & [tex]$\$[/tex] 2178.06[tex]$ & $[/tex]\[tex]$ 0.00$[/tex] & [tex]$\$[/tex] 43.56[tex]$ & $[/tex]\[tex]$ 32.67$[/tex] & [tex]$\$[/tex] 10.89[tex]$ & $[/tex]\[tex]$ 2167.16$[/tex] \\
5 & [tex]$\$[/tex] 2167.16[tex]$ & $[/tex]\[tex]$ 0.00$[/tex] & [tex]$\$[/tex] 43.34[tex]$ & $[/tex]\[tex]$ 32.51$[/tex] & [tex]$\$[/tex] 10.84[tex]$ & $[/tex]\[tex]$ 2156.33$[/tex] \\
6 & [tex]$\$[/tex] 2156.33[tex]$ & $[/tex]\[tex]$ 0.00$[/tex] & [tex]$\$[/tex] 43.13[tex]$ & $[/tex]\[tex]$ 32.34$[/tex] & [tex]$\$[/tex] 10.78[tex]$ & $[/tex]\[tex]$ 2145.55$[/tex] \\
7 & [tex]$\$[/tex] 2145.55[tex]$ & $[/tex]\[tex]$ 0.00$[/tex] & [tex]$\$[/tex] 42.91[tex]$ & $[/tex]\[tex]$ 32.18$[/tex] & [tex]$\$[/tex] 10.73[tex]$ & $[/tex]\[tex]$ 2134.82$[/tex] \\
\hline
\end{tabular}

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

A. [tex]$\$[/tex] 195.54[tex]$
B. $[/tex]\[tex]$ 32.18$[/tex]
C. [tex]$\$[/tex] 65.18[tex]$
D. $[/tex]\[tex]$ 260.72$[/tex]



Answer :

GinnyAnswer
To find the total interest paid by Jerome over the 7 months, we need to add up all the finance charges listed for each month. The finance charges for each of the 7 months are as follows:

1. \[tex]$0.00 2. \$[/tex]33.00
3. \[tex]$32.84 4. \$[/tex]32.67
5. \[tex]$32.51 6. \$[/tex]32.34
7. \[tex]$32.18 Now, let's sum these amounts step-by-step: \[ 0.00 + 33.00 = 33.00 \] \[ 33.00 + 32.84 = 65.84 \] \[ 65.84 + 32.67 = 98.51 \] \[ 98.51 + 32.51 = 131.02 \] \[ 131.02 + 32.34 = 163.36 \] \[ 163.36 + 32.18 = 195.54 \] 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

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