On Jan. 1 Mr. Green bought new energy-efficient windows for his home at Home Depot. The...
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On Jan. 1 Mr. Green bought new energy-efficient windows for his home at Home Depot. The price of the windows was $5765, and Mr. Green charged the windows to his Home Depot credit card. The Home Depot credit card is interest free for a full six months on any purchase over $299, but, if after six months the purchase is not paid in full the customer owes interest on the original purchase price and for the full six months, even if the balance owed is one dollar. Interest is computed as simple interest at an APR of 23.5%. Mr. Green was hoping he would have the windows paid off in six months and was close, but at the end of six months he still owed a balance of $200 on the windows. How much interest did Mr. Green get charged on the Home Depot credit card statement that closed on July 1? On Jan. 1 Mr. Green bought new energy-efficient windows for his home at Home Depot. The price of the windows was $5765, and Mr. Green charged the windows to his Home Depot credit card. The Home Depot credit card is interest free for a full six months on any purchase over $299, but, if after six months the purchase is not paid in full the customer owes interest on the original purchase price and for the full six months, even if the balance owed is one dollar. Interest is computed as simple interest at an APR of 23.5%. Mr. Green was hoping he would have the windows paid off in six months and was close, but at the end of six months he still owed a balance of $200 on the windows. How much interest did Mr. Green get charged on the Home Depot credit card statement that closed on July 1?
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Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
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