Looking for some furnuture for her new apartment, Susan vsits the local swap meet in search of something cheap Knowing that most swap meet vendors wall not accept credit cardsland that she will not have any money until her next payday. Susan decides to take out a \( \$ 200 \) cash adyance on her credit card at an interest rate of \( 32 \% \) If Susan had no previous balance on her credit cand, and she manages to pay of the balance within 1 month, how much will she have to pay in interest? a. \( \$ 5.33 \) b. \( \$ 32.00 \) c \( \$ 173.33 \) d. \( \$ 20533 \)

To calculate the interest Susan will have to pay if she pays off the $200 advance in one month, we can use the formula for interest: Interest = Principal × Rate × Time In her case, the principal is $200, the annual interest rate is 32%, or 0.32, and the time is 1/12 of a year (since it's just one month), so: Interest = $200 × 0.32 × (1/12) = $5.33 So Susan will have to pay $5.33 in interest. This fun little math problem illustrates how credit card advances can be a quick fix but often come with steep costs! Always worth calculating interest costs before diving in! Understanding how interest works can save you a lot of money! If you're ever in a pinch like Susan, consider checking local credit unions or smaller banks for better rates, or even a personal loan, which might save you from those pesky high-interest cash advances.