Question

If fabrice has a 1200 balance on his credit card this month and an apr of 20%, his interest charge for this month will be

Answer 1

To calculate the monthly interest charge for Fabrice's credit card with a balance of $1,200 and a 20% APR, divide the APR by 12 to get the monthly rate, then multiply by the balance, resulting in an interest charge of approximately $20.04 for the month.

Step-by-step explanation:

If Fabrice has a balance of $1,200 on his credit card and an Annual Percentage Rate (APR) of 20%, the interest charge for this month can be calculated using the formula for simple interest (since we are only looking at a one-month period). Typically, to calculate monthly interest, you would divide the annual rate by 12 (to account for the 12 months in a year) and then multiply that by the balance. Therefore, the monthly interest rate is 20% divided by 12, which is approximately 1.67%.

To find the interest for the month, you would multiply the balance by the monthly interest rate:
$1,200 × 0.0167 = $20.04. Thus, Fabrice's interest charge for this month will be approximately $20.04.

Answer 2

If Fabrice has a 1200 balance on his credit card this month and an apr of 20%, his interest charge for this month will be?

APR is the annual percentage rate of interest being charged to Fabrice annually, or yearly. To find the monthly percentage rate divide the annual rate by 12 months. If his APR is 20% he pays 1.67% of interest each month on the card. Fabrice interest on a $1,200 balance is $19.20.