A certain card established an account charging 1.7803% interest per month on the account balance. Interest charges are added to the balance each month, becoming part of the balance on which interest is computed the next month. If you pay off the original purchase charge within 3 months, all interest charges are canceled. Otherwise, you are liable for all the interest. Suppose you purchase $3900 worth of carpeting under this plan, and that you pay off the account 1 day late (3 months plus 1 day). What total interest amount must you pay? Do not include interest for the one extra day

Answer rating: 100% (QA)

If you pay off the original purchase charge within three months all interest charges are canceled Th... View the full answer