Decide whether the statement makes sense. Explain your reasoning.
-Sandi has a credit card balance of $4000. The credit card company charges interest of APR
= 18%, compounded daily. She's broke. She figures if she skips making any payments for
three months, she'll end up owing an extra $180 at the end of the three months. That's
because 18% APR is equivalent to 1.5% monthly and 1.5% of $4000 is $60, and 3 times $60
is $180.

Question

Quizplus · Accepted Answer

The Answer of Decide whether the statement makes sense. Explain your reasoning.
-Sandi has a credit card balance of $4000. The credit card company charges interest of APR
= 18%, compounded daily. She's broke. She figures if she skips making any payments for
three months, she'll end up owing an extra $180 at the end of the three months. That's
because 18% APR is equivalent to 1.5% monthly and 1.5% of $4000 is $60, and 3 times $60
is $180.

Decide Whether the Statement Makes Sense