Caprice Buys a Painting on His Credit Card for $14

Essay

Caprice buys a painting on his credit card for $14 990. She pays her credit card in full 3 days after the grace period of 11 days using her secured line of credit, which charges her prime plus 1%. She repays her loan in 168 days. The prime rate is 2.5% on the day of repayment of credit card loan and increases to 3% 90 days after that day. 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 painting?