An 'up to 55 days interest-free period' credit card was used for purchases that, after the...

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An 'up to 55 days interest-free period' credit card was used for purchases that, after the 30-day interval, totalled $1400. a. Find the minimum amount due if the current credit limit on this card is $2000 and the bank requires the largest of (a) $25, (b) 2.5% of the outstanding balance or (c) the excess above the credit limit plus 2.5% of the balance owing. b. If the balance was paid 10 days after the due date (which was 25 days from the statement date), what was the interest at 16% p.a. from the start of the 30-day interval? An 'up to 55 days interest-free period' credit card was used for purchases that, after the 30-day interval, totalled $1400. a. Find the minimum amount due if the current credit limit on this card is $2000 and the bank requires the largest of (a) $25, (b) 2.5% of the outstanding balance or (c) the excess above the credit limit plus 2.5% of the balance owing. b. If the balance was paid 10 days after the due date (which was 25 days from the statement date), what was the interest at 16% p.a. from the start of the 30-day interval?

Answer rating: 100% (QA)

a The minimum amount due can be calculated as follows First we need to determine if the balance exce... View the full answer