What is wrong, if anything, with the statement below?
Answer true or false . If false, explain your reasoning.
Suppose that you receive a credit card bill on December 1 for $950. You mail in a payment of $550 the same day, and it is received in 7 days. If the interest is charged at 15% APR and is calculated according to the adjusted balance method, the amount of interest is $$\begin{aligned}
I & = P r t \
& = \$ 950 ( 0.15 ) \left( \frac { 1 } { 12 } \right) \
& = \$ 11.875
\end{aligned}$$ or (to the nearest cent) $11.88

Question

What is wrong, if anything, with the statement below? 
Answer true or false . If false, explain your reasoning. 
Suppose that you receive a credit card bill on December 1 for $950. You mail in a payment of $550 the same day, and it is received in 7 days. If the interest is charged at 15% APR and is calculated according to the adjusted balance method, the amount of interest is $$\begin{aligned}
I & = P r t \
& = \$ 950 ( 0.15 ) \left( \frac { 1 } { 12 } \right) \
& = \$ 11.875
\end{aligned}$$ or (to the nearest cent) $11.88

Quizplus · Accepted Answer

adjusted balance is $400, interest is $5

What Is Wrong, If Anything, with the Statement Below I=Prt=$950(0.15)(112)=$11.875\begin{aligned}I & = P r t \\& = \$ 950 ( 0.15 ) \left( \frac { 1 } { 12 } \right) \\& = \$ 11.875\end{aligned}I​=Prt=$950(0.15)(121​)=$11.875​

What Is Wrong, If Anything, with the Statement Below $\begin{aligned}I & = P r t \\& = \$ 950 ( 0.15 ) \left( \frac { 1 } { 12 } \right) \\& = \$ 11.875\end{aligned}$