2
QuizMultiple Choice

Credit Cards — Quiz

Question 2 • Financial Algebra/Mathematics

Bethany purchases a laptop for $⁢800 on her credit card, which has a 20% annual interest rate. She pays off the purchase over 6 months. Assuming the credit card has a 30 -day grace period, how much total interest will she pay, rounded to the nearest dollar? Formula: total cost=purchase amount+(purchase amount⋅interest rate)

Answer
A
67 dollars
B
40 dollars
C
0 dollars
D
80 dollars

Explanation

The 30-day grace period means interest accrues for about 5 of the 6 months. Using simple interest, $800 × 0.20 × (5/12) = $66.67, which rounds to $67. So the total interest is 67 dollars.

AI-written and checked against the verified answer.

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