Question

1-You took a $200 cash advance by using checks linked to your credit card account. The bank charges you a 2% cash advance fee on the amount borrowed with no grace period on cash advances. How much money is required to pay off the balance in full after one month at 20% APR?

2-How much do you have to repay of a $10,000 grant for paying college expenses?

Answer 1

1: Amount due with fee = 200*(1+2%) = $204

Amount due with interest = Amount due*(1+Rate/12 months)

= $204*(1+20%/12)

=$207.4

2: Zero

Since this is a grant, the amount does not have to be repaid.