Question

Suppose Julia spends $932 on her credit card. Calculate the amount of interest she would owe in one month if she does NOT pay off her balance in full by the due date. Julia's APR is 16.99%. Estimate the interest charges using the monthly periodic rate

Answer 1

The amount of interest she would owe in one month if she does not pay off her balance in full by the due date is $13.2

Step-by-step explanation:

Given that Julia's APR is 16.99%

Suppose she spends $932 on her credit card, the amount of interest she would owe in a year is 16.99% of $932, this amounts to

0.1699 * 932

= $158.3468

To know the interest in a month, we divide the last result by 12

158.3468/12

= $13.196

This is approximately $13.2