Assuming the APR on your credit card is 21% and your average daily balance this

Question

Assuming the APR on your credit card is 21% and your average daily balance this month was $5,000, what will your interest or finance charges for the month (30 days) be? A) $11.05 B) $22.00 C) $50.00 D) $85.50 5) Fred, who dropped out of Dr. Falcon's class, ran short on cash and borrowed $400 through a Payday Loan company. The company charged him a fee of $60 to borrow the $400 for 14 days. Using the simple interest method calculate what interest rate was Fred charged for the aforementioned loan. A) 3.91% B) 39.1% C) 391.07% D) 500% 6) Wilma, who is Fred's wife, learned from Fred and she borrowed $500 through a Payday Loan company. The company charged him a fee of $60 to borrow the $500 for 14 days. Using the simple interest method calculate what interest rate was Fred charged for the aforementioned loan. A) 3.12% B) 31.2% C) 312.85% D) 400%

Explanation / Answer

4)

D) - $85.5 APR 21% average daily balance 5000 interest    85.60 (5000*21%*30/365)

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