Question

If a musician uses his credit card to pay for a new violin that costs $2,900 and does not pay on it until the second month, what will the 3.35% monthly interest charge be at the end of the first month? Show your work

Answer 1

$97.15.

Explanation:

We have been given that a musician uses his credit card to pay for a new violin that costs $2,900 and does not pay on it until the second month. The interest rate of credit card is 3.35% monthly.

We will use interest formula to solve our given problem.

`I=PrT`, where,

`I=\text{Interest}`,

`P=\text{Principal amount}`,

`r=\text{Interest rate in decimal form}`,

`T=\text{Time}`

Let us convert our given interest rate in decimal form.

`3.35\%=(3.35)/(100)=0.0335`

Upon substituting our given values in interest formula we will get,

`I=2,900*0.0335*1`

`I=2,900*0.0335`

`I=97.15`

Therefore, the monthly interest charge at the end of the 1st month will be $97.15.