Question

Please help

You charged $1,000 on a credit card and it has an interest rate of
15% APR. If you make no payments on the card for one month, how much is your TOTAL BALANCE?

1. $150
2. $850
3. $1,015.50
4. $1,012.50

Answer 1

Answer: 4; $1,012.50

Step-by-step explanation:

The formula to calculate the interest charged on a credit card balance is:

Interest = (Balance * APR) / 12

Where,

Balance = $1,000

APR = 15%

So,

Interest = ($1,000 * 15%) / 12 = $12.50

Therefore, after one month, the total balance on the credit card would be $1,000 + $12.50 = $1,012.50.