Question

Sidney took a $850 cash advance by using checks linked to her credit card account. The bank charges a 3 percent cash advance fee on the amount borrowed and offers no grace period on cash advances. Sidney paid the balance in full when the bill arrived What was the cash advance fee? (Round your answer to 2 decimal places What was the interest for one month at an 12 percent APR? (Round your answer to 2 decimal What was the total amount she paid?

Answer 1

Answer: $884

Explanation:

To calculate the cash advance fee paid. We have:

3% cash advance fee multiplied by the amount borrowed.

0.03 x 850 = $25.50.

To calculate the interest for one month at a 12 percent APR.

850 x 0.12 x 1/12

= $8.50.

To calculate the total amount she paid:

850 + 25.50 + 8.50

= $884