Question

Your friend, Isabel, has a credit card with an APR of 19.9%! How many dollars would she pay as a finance charge for just 1 month on a $1000 charge?

Express your answer rounded to the nearest cent.

Answer 1

$16.583

Explanation:

Given :Your friend, Isabel, has a credit card with an APR of 19.9%!

To Find : How many dollars would she pay as a finance charge for just 1 month on a $1000 charge?

Solution:

We are given that finance charge for just 1 month on a $1000 charge.

So, Finance charge =
`(19.9\% * 1000)/(12)`

Finance charge =
`((199)/(1000)* 1000)/(12)`

Finance charge =
`(199* 1000)/(12)`

Finance charge =
`16.583`

Hence she pay $16.583 as a finance charge for just 1 month on a $1000 charge.