Question

You take out a cash advance of $1,670.00 on a credit card with a 2% cash advance fee and a 13.5% APR. What is the amount due by the end of the month?

A.
$1,722.56
B.
$1,895.45
C.
$1,933.36
D.
$1,703.40

Answer 1

A=1,670×(1+0.135÷12)+1,670×0.02
A=1,722.19

Answer 2

$1703.4

Explanation:

Given : You take out a cash advance of $1,670.00 on a credit card with a 2% cash advance fee and a 13.5% APR.

To Find: What is the amount due by the end of the month?

Solution:

2% cash advance fee =
`2\% * 1670`

=
`(2)/(100) * 1670`

=
`33.4`

So, the amount due by the end of the month = $1,670.00 + $33.4

=$1703.4

Hence the amount due by the end of the month is $1703.4