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Your VISA bill for September has one item: a 72 inch Plasma television costing $3, 984 which was purchased on Sept 15th.
It is now October 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 occurred 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 18.2%.
If you pay off the debt (including interest) right now (at midnight on October 15th), then how much do you have to pay? (Assume a 365-day year.)
If you pay off the debt (including interest) right now (at midnight on October 15th), then how much do you have to pay? $ (Round to the nearest cent.)
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