Cynthia had a credit card with a 17% apr and a $3,265 balance. she had budgeted to have the credit card paid off in 24 months. but after missing a single monthly payment, cynthia’s credit card company has increased her interest rate to 21%. how much extra will cynthia have to pay in finance charges (interest) because of the increase in her apr if she still pays off the credit card in 24 months?

Cynthia will have to pay $152.16 extra due to increase in her APR.

Step-by-step explanation:

The EMI formula is =

Scenario 1st:

p = 3265

r =

n = 24

Putting the values in the formula:

= $ 161.44

Scenario 2nd:

p = 3265

r =

n = 24

Putting the values in the formula:

= $ 167.78

The difference between these two are :

per month

So, for 24 months, the charge will become = dollars.

Therefore, Cynthia will have to pay $152.16 extra due to increase in her APR.

step-by-step explanation:

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