If an individual carried a credit card with a $6000 limit and carried an unpaid balance
of $2513 for 42 days before paying it off in full. How much would they have had to pay
if the credit card company charged 17.2% annually on all outstanding balances?
$ 2562.74
$ 2658.25
$ 2459.47
$ 2834.24

To determine the amount the individual would have to pay, we need to calculate the interest accrued on the unpaid balance over the 42-day period. The steps are as follows:

1. **Calculate the daily interest rate:**

   The annual interest rate is 17.2%. To find the daily interest rate, we divide the annual rate by 365 (assuming a non-leap year):

   \[
   \text{Daily interest rate} = \frac{17.2\%}{365} = \frac{0.172}{365} \approx 0.0004712
   \]

2. **Calculate the interest for the 42-day period:**

   The unpaid balance is $2513. We will use the daily interest rate to find the interest accrued over 42 days:

   \[
   \text{Interest} = \text{Principal} \times \text{Daily interest rate} \times \text{Number of days}
   \]

   \[
   \text{Interest} = 2513 \times 0.0004712 \times 42 \approx 49.74
   \]

3. **Calculate the total amount to be paid:**

   The total amount includes the original balance plus the interest accrued:

   \[
   \text{Total amount} = \text{Principal} + \text{Interest}
   \]

   \[
   \text{Total amount} = 2513 + 49.74 \approx 2562.74
   \]

So, the individual would have had to pay **$2562.74**.

The correct answer is:

\[
\boxed{2562.74}
\]

Would you like any further details or have any questions?

Here are five more questions you might want to ask:
1. How is compound interest different from simple interest?
2. How do you calculate the effective annual rate (EAR) from a nominal annual rate?
3. What is the formula for calculating the future value of an investment?
4. How do you determine the present value of a series of future cash flows?
5. What is the significance of the time value of money in finance?

**Tip:** When working with interest rates, always make sure to convert them to the appropriate time period (daily, monthly, etc.) to ensure accurate calculations.

Learn how to calculate credit card interest with a detailed example problem and solution. This problem involves determining the total payment on a credit card with specific annual interest rates and unpaid balance over a certain period. Suitable for understanding financial calculations and interest rates.

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