Joan Buys a Snow Blower on Her Credit Card for $1499

Multiple Choice

Joan buys a snow blower on her credit card for $1499. She pays her credit card in full a day after the grace period of 21 days using her secured line of credit, which charges her prime (3.25%) plus 1%. She repays her loan in 15 days. If her credit card company charges her a rate of 28% after the grace period, what is the total amount of interest paid on the purchase of the snow blower?

A) $25.30
B) $1524.30
C) $2.66
D) $27.96