AnswersTX-Personal Financial LiteracyUnit Test — Cumulative examQuestion 21
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Unit Test — Cumulative exam

Question 21 • TX-Personal Financial Literacy

This table can be used to organize Gigi’s credit card balances and payments over 6 months. The annual percentage rate on the credit card is 14%.Gigi’s Credit Card PaymentsMonthBalancePaymentInterest RateInterest Charged1$650$3000.01167$4.082$354.08$500.01167 3$307.63$500.01167 4$260.64$500.01167 5$213.10$500.01167 6$165$500.01167 What is the amount of interest charged for the first 6 months?$

Answer
A
16.34
B
17.34
C
18.34
D
19.34

Explanation

The monthly rate is 0.01167. For each month, apply it to the balance after the payment: the interest charges are $4.08, $3.55, $3.01, $2.46, $1.90, and $1.34. Adding them gives $16.34, so the total interest charged is choice A, $16.34.

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