You are trying to demonstrate the cost of credit card interest to a client. Assume the client
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Question:
You are trying to demonstrate the cost of credit card interest to a client. Assume the client spends $100 per month on their credit card for 5 years and makes no interest or principal payments (i.e. the credit card balance only grows).
The credit card interest rate is 24% and interest is charged monthly (i.e. added to the credit card balance). The 24% interest rate is an APR (annual percentage rate), meaning your monthly interest rate is 2%. The monthly interest is charged on the closing balance from the prior month.
What is the amount of interest charged in the 60th month?
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date: