Travis thompson uses his credit card to obtain a cash advance of $600 to pay for his textbooks in medical school. the interest rate charged for the loan is 0.04285% per day. travis repays the money plus the interest after 21 days.

a) determine the interest charged for the cash advance.

b) when he repaid the loan, how much did he pay the credit card company?

(a) $5.3991

(b) 605.3991

Step-by-step explanation:

(a)

Taking this as simple interest

Interest=

where P is principal amount which in this case is $600, R is the rate in percentange which in this case is 0.04285% and T is the duration which in this case is 21 days. Substituting these we have

Interest= ($600*0.04285*21)/100

Interest=$5.3991

(b)

Amount repaid is combination of interest and principal amount

Amount=$600+$5.3991

=$605.3991

Ans=$605.3991

72 is the answer to this problem

2

step-by-step explanation: