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Assume that Louisa carried an average balance of $1,000 from her credit card
purchases over the past year. The A.P.R. on her credit card for the past year was
19.99%. Approximately how much interest would Louisa have paid over the
course of the year?*
She would have paid interest charges of $2,000
She would have paid interest charges of $20.
The credit card company would have paid Louisa $20.
She would have paid interest charges of $200
M

Respuesta :

Using simple interest, considering the information given, it is found that the correct option is:

She would have paid interest charges of $200.

The amount of interest accrued in simple interest is given by:

[tex]E = Pit[/tex]

In which:

  • P is the balance.
  • i is the interest rate.
  • t is the time.

For this problem:

  • Balance of $1,000, hence [tex]P = 1000[/tex]
  • APR of 19.99%, hence [tex]i = 0.1999[/tex]
  • 1 year, hence [tex]t = 1[/tex].

The amount she will pay is:

[tex]E = Pit = 1000(0.1999) = 199.9[/tex]

Rounding up, $200, and the correct option is:

She would have paid interest charges of $200.

A similar problem is given at https://brainly.com/question/13176347

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