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]3.34 & \[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]$65.18
B. \$[/tex]32.18
C. \[tex]$260.72
D. \$[/tex]195.54



Answer :

GinnyAnswer
To find the total amount that Jerome has paid in interest over the 7 months, we need to sum up the finance charges for each month.

Let's take a look at the finance charges listed for each month:

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]3.34
7. Month 7: \[tex]$32.18 Now, let's add these values together: \[ 0.00 + 33.00 + 32.84 + 32.67 + 32.51 + 3.34 + 32.18 \] Adding these amounts step-by-step: \[ 0.00 + 33.00 = 33.00 \] \[ 33.00 + 32.84 = 65.84 \] \[ 65.84 + 32.67 = 98.51 \] \[ 98.51 + 32.51 = 131.02 \] \[ 131.02 + 3.34 = 134.36 \] \[ 134.36 + 32.18 = 166.54 \] Therefore, the total amount of interest paid over the 7 months is \(\$[/tex] 166.54\).

Hence, the correct answer is:
D. [tex]\( \$ 195.54 \)[/tex]

Other Questions