What will be the effective rate of interest after the 6


You have a $1,550 balance on your 15% credit card. You have lost your job and been unemployed for 6 months. You have been unable to make any payments on your balance. However, you received a tax refund and want to pay off the credit card.

a. How much will you owe on the credit card if you have not made a payment for 6 months? (Round your answers to the nearest cent.)

Amount owed

1 month $

2 months $

3 months $

4 months $

5 months $

6 months $

b. How much interest will have accrued? (Round your answer to the nearest cent.)

Interest accrued            $

c. What will be the effective rate of interest after the 6 months? (Round your answer to the nearest hundredth percent.)

Effective rate of interest             %

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