Question

Walter opens a credit card with an APR of 24.99% compounded monthly. How much is charged in interest this month if his balance is $1,105? $44.22 $23.01 $92.08 $24.9

Answer 1

Find the interest for 1 year (12 months)
interest = 24.99% × 1,105
interest = 0.2499 × 1,105
interest = 276.1385

Find the interest for 1 month
interest = interest per year / 12
interest = 276.1385 / 12
interest = 23.01

The interest of this month is $23.01