Interest paid by Linda is equal to $4.272 approximately equal to $4.27.
Solution:
Given that
Rate of interest on first $200 = 1.8%
Rate of interest on any amount over $200 = 1.2%
Unpaid balance amount of Linda’s credit card bill = $256
Need to calculate interest paid by her on $256.
Unpaid balance = $256
=$200 + 56
Amount over $200 = 56
Interest paid on first $200 = 1.8% of 200
= 0.018 x 200 = $3.6
Interest paid on amount over $200 that is $56 = 1.2% of 56
= 0.012 x 56 = $0.672
So total interest paid on $256 = 3.6 + 0.672 = $4.272.
Hence interest paid by Linda is equal to $4.272 approximately equal to $4.27.
