The owner of the cell phone will be responsible for paying $14.91 for the overages.
Why is there an excess?
The overage is the discrepancy between actual minutes used and estimated minutes used.
For instance, if the plan anticipates 4,000 minutes of phone usage annually, but the plan holder uses 4,010 minutes, the additional 10 minutes are considered overages.
Underages is the polar opposite of overages. The plan holder will receive a refund if the phone plan includes minors.
Overages typically incur a variable plan cost per minute.
Fixed monthly fee equals $35.98
Utility tax APR is 6.5 percent.
40 minutes is the overage.
Rate per minute of overage is $0.35
($0.35 x 40) = $14 is the total amount for the overage.
The overage interest equals $0.91 ($14 x 6.5%)
$14.91 ($14 + $0.91) is the total amount paid for the overages.
Thus, you will pay $14.91 for the overages if you exceed the plan by 40 minutes at $0.35 plus an APR of 6.5%.
Read more on overages here: https://brainly.com/question/29379328
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