How much interest will you have to pay for a credit card balance of $1,034 that is 1 month overdue, if a 17% annual rate is charged? you will have to pay $1224.43| in interest. (round to two decimal places.)

Ans. Since the annual rate is not compunded (for example, compounded monthly) you will have to pay in interest $27.41, and the total payment is $1,061.41

Step-by-step explanation:

Hi, since the balance is 1 month overdue, it means that you owe 2 months of interest to this obligation, but before we start finding the interest of your credit card, first let´s find the effective monthly equivalent rate for that 17% annual interest rate.

The formula is as follows.

Therefore

So your monthly interest rate is 1.317%. Now let´s find the amount of interests that you have to pay for 2 months. This is the formula.

Where "n" is the period of time in months that you owe to the financial institution. The result of that is:

This way, interest are = $27.41 and the total amount that you will have to pay is:

(x, y)→(x − 8, y − 7)

step-by-step explanation:

enjoy!