Question

Dave charges up to the credit limit of $6,000 each month. The minimum payment is $150. What is the interest charge for the unpaid balance at 18% per year?

A.) $150.00

B.) $60.00

C.) $67.75

D.) $87.75

Answer 1

The answer is option D : $87.75

Explanation:

Dave charges up to the credit limit of $6,000 each month. The minimum payment is $150.

After paying the minimum payment, balance remains =

`6000-150=5850` dollars

APR is 18%.

Monthly rate is =
`(18)/(12)=1.5` or 0.015

So, 0.015% of 5850 is =
`0.015*5850=87.75` dollars

Therefore, the answer is option D : $87.75

Answer 2

For the answer to the question above, I believe the answer is $ 88
for the interest charge for the unpaid balance at 18% per year.
This is an easy math.You can also answer the closest to my answer which is
D.) $87.75