Phillip charged $400 worth ofgoods on his credit card. On his first bill, he was
ID: 3090360 • Letter: P
Question
Phillip charged $400 worth ofgoods on his credit card. On his first bill, he was not charged anyinterest, and he made a payment of $20. He then charged another $18worth of goods. On his second bill a month later, he was charged 2%interest on his entire unpaid balance. How much interest wasPhillip charged on his second bill?A. $8.76 B. $7.96 C. $7.60 D. $7.24 E. $6.63 Phillip charged $400 worth ofgoods on his credit card. On his first bill, he was not charged anyinterest, and he made a payment of $20. He then charged another $18worth of goods. On his second bill a month later, he was charged 2%interest on his entire unpaid balance. How much interest wasPhillip charged on his second bill?
A. $8.76 B. $7.96 C. $7.60 D. $7.24 E. $6.63
Explanation / Answer
(400-20+18)x.02=7.96 or B