Question
Your VISA bill for September has one item: a 72 inch Plasma television costing $4,124 which was purchased on Sept. 15th. It is now Oct.
Your VISA bill for September has one item: a 72 inch Plasma television costing $4,124 which was purchased on Sept. 15th. It is now Oct. 15th at midnight. You have missed the payment deadline and now owe interest. VISA calculates interest on the daily balance (with daily compounding) from the date of purchase. Assume that the purchase occured at midnight, so the Sept. 15th purchase accrues its first day of interest at the end of Sept. 16th. The annual rate charged by VISA is 19.2%. If you pay off the debt (including interest) right now (at midnight on Oct. 15th), then how much do you have to pay? (Assume a 365-day year). Round to the nearest cent. *Show work please! Thank you!*
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started