Explanation:
Credit card balance: $203
Default (GPT-3.5)
User
what is the balance on a credit card, that charges 18% apr interest rate over 1 month period for $200
ChatGPT
To calculate the balance on a credit card with an 18% APR over a 1-month period for a $200 initial balance, you can use the following formula:
Balance = Initial Balance + (Initial Balance * Monthly Interest Rate)
First, calculate the monthly interest rate by dividing the annual rate by 12 (since there are 12 months in a year):
Monthly Interest Rate = (18% / 12) = 1.5%
Now, plug these values into the formula:
Balance = $200 + ($200 * 1.5%)
Balance = $200 + ($200 * 0.015)
Balance = $200 + $3
Balance = $203
So, after 1 month, with an 18% APR, the balance on a $200 credit card would be $203.