Answer:
The amount of interest a customer would pay for a $188 overdraft is $20.80.
Explanation:
Amount of interest on $100 = Overdraft protection rate *$100 = 12% * $100 = $12
Total overdraft = $188
Excess over $100 = Total overdraft - $100 = $188 - $100 = $88
Excess over $100 as a portion of $100 = 88 portion of 100 = (88 / 100) * 100 = $8.8 (Note: This has to be stated in dollar not in percentage.)
Total interest amount = Amount of interest on $100 + Excess over $100 as a portion of $100 = $12 + $8.80 = $20.80
Therefore, the amount of interest a customer would pay for a $188 overdraft is $20.80.
