Right or Wrong? Suppose That You Receive a Credit Card $$\begin{array} { l } I = \text { Prt } \\= \$ 1,050 ( 0.15 ) \left( \frac { 1 } { 12 } \right) \\= \$ 13.125\end{array}$$

question 177

Multiple Choice

Right or Wrong? Suppose that you receive a credit card bill on December 1 for $1,050. You mail in a payment of $650 the same day, and it is received in 7 days. If the interest is charged at 15% APR and is calculated according to the adjusted balance method, the amount of interest is $$\begin{array} { l } I = \text { Prt } \\= \$ 1,050 ( 0.15 ) \left( \frac { 1 } { 12 } \right) \\= \$ 13.125\end{array}$$ or (to the nearest cent) $13.13

• A) Wrong
• B) Right