Question

suppose you have a credit card debt of $6000. Last month, the bank charged you $55 interest on the debt. The solution to the equation 55= 6000/12 * r represents the annual interest rate in the credit card, r. Find the annual interest rate on the credit card

Answer 1

Answer: The formula for the interest charged on a credit card debt is:

Interest = (Principal * Annual Interest Rate) / 12

We know that the interest charged last month is $55, and the principal (the credit card debt) is $6000, so we can substitute these values into the formula and solve for the annual interest rate:

55 = (6000 * r) / 12

To find the annual interest rate, we will solve for r.

r = (55 * 12) / 6000

r = 0.09 which is a 9% annual interest rate.

So, the annual interest rate on the credit card is 9%.

Explanation: