a) Determine the interest charged for the cash advance. b) When he repaid the loan, how much did he pay the credit card company?

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Travis Thompson uses his credit card to obtain a cash advance of $600 to pay for his textbooks in medical school. The
interest rate charged for the loan is 0.04386% per day. Travis repays the money plus the interest after 30 days.
a) Determine the interest charged for the cash advance.
b) When he repaid the loan, how much did he pay the credit card company?
Transcribed Image Text:Travis Thompson uses his credit card to obtain a cash advance of $600 to pay for his textbooks in medical school. The interest rate charged for the loan is 0.04386% per day. Travis repays the money plus the interest after 30 days. a) Determine the interest charged for the cash advance. b) When he repaid the loan, how much did he pay the credit card company?
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