Question

Caitlyn has a credit card with a spending limit of $1500 and an APR (annual percentage rate) of 18%. During the first month, Caitlyn charged $375 and paid $250 of that in her billing cycle. Which expression will find the amount of interest Caitlyn will be charged after the first month? (0. 18) (250 dollars) (0. 015) (375 dollars) (0. 18) (375 dollars) (0. 015) (125 dollars).

Answer 1

To find the amount of interest Caitlyn will be charged after the first month, subtract the payments made from the total charges to calculate the remaining balance. Then, multiply the remaining balance by the APR and divide by 12 to get the monthly interest rate.

Step-by-step explanation:

To find the amount of interest Caitlyn will be charged after the first month, we need to calculate the remaining balance on her credit card. The remaining balance is equal to the total charges minus the payments made. In this case, the total charges are $375 and the payments made are $250, so the remaining balance is $375 - $250 = $125.

To calculate the interest, we multiply the remaining balance by the APR and divide it by 12 to get the monthly interest rate. So the interest charged after the first month is ($125)(0.18)/(12) = $1.875.

Therefore, the expression that will find the amount of interest Caitlyn will be charged after the first month is (0.18) (125 dollars) (0.015).

Answer 2

Caitlyn will be charged interest on the remaining balance of $125 after her payment. The correct calculation for the interest is to multiply $125 by the monthly interest rate of 1.5%, yielding $1.875. Therefore, the expression to determine Caitlyn's interest after the first month is (0.015) ($125).

Step-by-step explanation:

To calculate the interest Caitlyn will be charged after the first month, we need to understand how credit card interest works and apply the correct formula. Caitlyn had a beginning balance of $375, made a payment of $250, which leaves her with a remaining balance of $125 for the rest of the billing cycle. Since interest is typically charged on the remaining balance, not on what was paid, we will calculate the interest on $125.

The annual percentage rate (APR) on Caitlyn's credit card is 18%. To find the monthly interest rate, we divide the APR by 12 (months). In this case:

Monthly interest rate = APR / 12 = 18% / 12 = 1.5% or 0.015.

Interest for the first month is calculated as:

Interest = Remaining balance x Monthly interest rate = $125 x 0.015 = $1.875.

The correct expression to find the amount of interest charged after the first month is:

(0.015) ($125)