Answered

Cynthia had a credit card with a 17% APR and a $3,265 balance. She had budgeted to have the credit card paid off in 24 months. But after missing a single monthly payment, Cynthia’s credit card company has increased her interest rate to 21%. How much extra will Cynthia have to pay in finance charges (interest) because of the increase in her APR if she still pays off the credit card in 24 months?

A$152.16

B$272.08

C$609.32

D$761.48

Verified Answer :

Answer:

The answer is A $152.16

Brainliest please

Step-by-step explanation:

abiolataiwo2015

The amount extra that Cynthia will have to pay in finance charges is: a. $152.16.

What is finance charges?

Finance charges can be defined as the way in which a lender is being compensated for lending out to a borrower.

First step

p = 3265

r = 17%=17%/12/100=0.014166

n = 24

EMI=3265×0.014166×(1+0.014166)^24÷(1+0.014166)^24-1

EMI=3265×0.014166×(1.014166)^24÷(1.014166)^24-1

EMI=$161.43

Second step

p = 3265

r = 21%=21%/12/100=0.0175

n = 24

EMI=3265×0.0175×(1+0.0175)^24÷(1+0.0175)^24-1

EMI=3265×0.0175×(1.0175)^24÷(1.0175)^24-1

EMI=$167.77

Third step

Difference=$167.77-$161.43

Difference=$6.34

Finance charges=24 months×$6.34

Finance charges=$152.16

Inconclusion the amount extra that Cynthia will have to pay in finance charges is: a. $152.16.

Learn more about finance charges here:https://brainly.com/question/4403314