Question

The outstanding balance on your credit card is $128 before the interest charge is applied. How much is your interest charge for the month ofthe interest rate is 2% per month?

Answer 1

From the information provided, the balance before the interest charge is $128. The interest charge itself is 2% per month. The amount charged as interest therefore is;

`\begin{gathered} \text{Interest rate=2\% (or 0.02)} \\ \text{Outstanding balance=128} \\ \text{Amount of interest=}(2)/(100)*128 \\ \text{Amount of interest=0.02 x 128} \\ \text{Amount of interest=2.56} \end{gathered}`

The interest charge is $2.56 per month