Answer:
about $51.47
Explanation:
You want the interest due on a credit card balance of $250 after 5 years if the rate is 3.75%.
Interest
Most credit cards compound interest monthly. For that case, the account balance will be ...
A = P(1 +r/12)^(12·t)
where annual rate r is compounded monthly for t years.
The interest due is the difference between the principal amount (P) and this balance amount.
I = $250((1 +0.0375/12)^(12·5) -1) ≈ $51.47
You owe $51.47 in interest.
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Additional comment
Most credit cards have a minimum monthly payment, and may charge a late fee for missed payments. In the US, the credit card rate is usually substantially higher than 3.75%, often between 10% and 30%. We consider this scenario to be unrealistic.
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