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Problem 5-8 (LO5-4) Sidney took a cash advance of $200 by using checks linked to her credit card account. The bank charges a cash
Problem 5-8 (LO5-4) 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? Answer is complete and correct. Cash advance fee $ b. What was the interest for one month at an APR of 18 percent? Answer is complete but not entirely correct. Interest 2 c. What was the total amount she paid? Assume the credit card has a 30-day grace period. Answer is complete but not entirely correct. Total amount 206 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. Amount paid Answer is complete and correct. 200
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