Begin by clearly stating the problem; you can copy this from the problem set file. Show how you solved the problem step by step, including any formulas or equations that you used. Finally, state your final answer in a complete sentence, and make sure that you include the correct units with you answer. Place both problem solutions in the same response.1.)Raoul's credit card statement showed these transactions during May. May 1 Previous balance $304.29 May 6 Payment $100.00 May 10 Purchases $58.10 May 15 Payment $100.00 May 26 Purchases $114.73 The interest rate is 18% per month on the average daily balance. Find the average daily balance, the finance charge for the month, and the new balance on June 1. [Hint: Remember that May has 31 days.]
Accepted Solution
A:
Answer: 13%Step-by-step explanation:We know that the formula to find the simple interest :[tex]I=Prt[/tex], where P is the principal amount , r is rate (in decimal )and t is the time period (in years).Given : Albert borrowed $19,100 for 4 years. The simple interest is $9932.00. Find the rate.i.e. P = $19,100 and t= 4 years and I = $9932.00Now, Substitute all the values in the formula , we get[tex]9932=(19100)r(4)\\\\\Rightarrow\ r=\dfrac{9932}{19100\times4}\\\\\Rightarrow\ r=0.13\ \ \ \text{[On simplifying]}[/tex]In percent, [tex]r=0.13\times100\%=13\%[/tex]Hence, the rate of interest = 13%