Question

Caitlyn has a creditc 1 with a spending limit of s1500 and an APR (annual percentage rate) During the first month,Caitlyn charged $375 and paid $250 of that in her billing cycle. Which expression will amount of interest Caitlyn will befind the charged after the first month?(0.18) $250(0.015) $375(0.18) $375)o (0.015) $125

Answer 1

it will be D: (0.015) $125

Answer 2

The correct option is D) (0.015) $125.

Explanation:

Consider the provided information.

It is given that the APR=18%

Therefore monthly interest can be calculated as

Monthly interest =
`(18)/(12)=1.5\%`

Monthly interest =
`(1.5)/(100)=0.015`

During the first month,Caitlyn charged $375 and paid $250 of that in her billing cycle.

Therefore, amount liable for interest charges is:

375 - 250 = $125

Hence, the interest can be calculated as:

(0.015) $125

Therefore, the correct option is D) (0.015) $125.