Question

If the typical balance on Lucy's credit card is $750 and the interest rate (APR) on her credit card is 16%, how much in interest would you expect Lucy to be charged in a typical month? About $6.67 About $15.14 About $51.74 About $80.86 About $10.00

Answer 1

Answer: About $10.00

Explanation:

1. You have the following information given in the problem:

- The typical balance is $750.

- The interest rate is 16%.

2. To solve this exercise, you must apply the following formula:

`TotalInterest=(Amount)(Rate)(Time)`

Where:

`Amount=750\\Rate=0.16\\Time=(1)/(12)`

3. Substitute values:

`TotalInterest=(750)(0.16)((1)/(12))\\TotalInterest=10`

4. Therefore, the result is $10.00.