Question

Lenny has a remaining balance on his credit card of $3,000. His credit card has an APR of 20 percent. How much will he pay in interest in one month?

$50.20
$600
$50.00
$6.00

Answer 1

A=p(1+i/m)^mn
P=3000
i=0.20
M=12
n=1/12
A=3,000×(1+0.20÷12)^(12*1/12)
=3,050
Interest earned=3050-3000=50