Mathematics, 16.02.2021 14:00 jghdvine
Abigail, a newly graduated student, just moved to a new city to start her first job. In order to assist her
with moving expenses, she applied for a credit card. According to its terms, for any payment she makes
within a month from the date of purchase, she will be charged no interest; however, if she does not pay
off the full balance, interest will be charged daily on the remaining balance effective from the date of
purchase. Every month she must make a minimum payment. On May 01, Abigail spent $1750 of her
$2000 credit card limit buying furniture for her new apartment. She didn’t make any other purchases in
the month of May.
1. On June 01, Abigail made the minimum payment of $45 that was charged on her credit card. After
her payment, interest took effect, and her new balance was $1758.77. What is the nominal interest
rate of her credit card compounded daily? Round your answer to two decimal places, and use this
rounded value for the remainder of the case.
Answers: 2
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Abigail, a newly graduated student, just moved to a new city to start her first job. In order to ass...
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