Question

If your credit score is 750, how much will you pay in interest by the end of 1 month if you owe $2,375.00?

$31.17
$24.74
$18.31
$11.38,

Answer 1

$18.31

Explanation:

Credit score = 750

Period (n) = 1 month

Debt = $2375

Since the score is 750, from the table annual rate = 9.25%

Monthly rate (r) = 9.25/12 = 0.7708%

Interest =.PRT/100

P= principal amount

R= rate

T = time taken

Interest = (2375*0.7708*1)/100

= 18.6065

= $18.31 (approximately )

Answer 2

The answer is $18.31. The answer would be the third option.
The interest is 1/12
Then 9.25% multiplied by the $2,375 balance
(0.0925 * 2375) / 12 = 219.69
=219.69 / 12
= $18.31