Xavier has a credit card with a 15.74% APR. If he leaves a balance of $325.17 on his card, what interest will be be charged on his first day? (Hint: credit cards compound daily) Select one: a. $0.26 b. $0.14 c. $0.18 d. $0.85
Added by Kevin M.
Step 1
APR stands for Annual Percentage Rate, so it's the interest rate for a whole year. To get the daily rate, we divide the annual rate by 365 (the number of days in a year). So, 15.74% divided by 365 is approximately 0.0431%. Show more…
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