Question

Marty uses a credit card for only necessary purchases. The interest rate charged by the credit card company is 19.9%. If he maintains an average balance of $3,500 owed on the card, how much will have have paid in interest after one year?

Answer 1

Hi there

First convert the rate into decimal
19.9/100=0.199

So interest paid after one year is
I=3,500×0.199×1year
I=696.5

Good luck!