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The closing balance, including interest, on Simon's credit card at 8 th June 2020 was $1772.94. The interest rate on the credit card is 18.49%

The closing balance, including interest, on Simon's credit card at 8^thJune 2020 was $1772.94. The interest rate on the credit card is 18.49% pa compounded daily.

a) What will the closing balance be at 8^thMay 2021 if Simon makes no payments and there are no new charges during the year?(3 marks)

b) How much compound interest accumulates during the year?(1 mark)

c) What is the true annual effective rate of interest charged?(2 marks)

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