Question

Travis Thompson uses his credit card to obtain a cash advance of​ $600 to pay for his textbooks in medical school. The interest rate charged for the loan is 0.04285​% per day. Travis repays the money plus the interest after 21 days.
​a) Determine the interest charged for the cash advance.

​b) When he repaid the​ loan, how much did he pay the credit card​ company?

Answer 1

Answer:

(a) $5.3991

(b) 605.3991

Step-by-step explanation:

(a)

Taking this as simple interest

Interest= $\frac {PRT}{100}$

where P is principal amount which in this case is $600, R is the rate in percentange which in this case is 0.04285% and T is the duration which in this case is 21 days. Substituting these we have

Interest= ($600*0.04285*21)/100

Interest=$5.3991

(b)

Amount repaid is combination of interest and principal amount

Amount=$600+$5.3991

=$605.3991

Ans=$605.3991