You took a $500 cash advance by using checks linked to your credit card account.The bank charges you a 2% cash advance fee on the amount borrowed with no graceperiod on cash advances. How much money is required to pay off the balance in fullafter one month at 12% APR?Your Answer:Answer

Cash advance = $ 500 Cash advance fee = 2% Cash advance fee amount = Cash advance*Cash advance fee…

Answered: You took a $500 cash advance by using…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Using the daily balance method of calculating interest, how much interest will you owe on a $500 credit card bill that is 3 weeks overdue at interest rate at 20%?
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Sidney took a cash advance of $200 by using checks linked to her credit card account. The bank charges a cash advance fee of 2 percent on the amount borrowed and offers no grace period on cash advances. Sidney paid the balance in full when the bill arrived. a. What was the cash advance fee? b. What was the interest for one month at an APR of 18 percent? c. What was the total amount she paid? d. What if she had made the purchase with her credit card and paid off her bill in full promptly? Assume the credit card has a 30-day grace period.

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You took a $500 cash advance by using checks linked to your credit card account. The bank charges you a 2% cash advance fee on the amount borrowed with no grace period on cash advances. How much money is required to pay off the balance in full after one month at 12% APR? Your Answer: