Question

Damian has a balance of $6,350 on his credit card. He threw the card away so he can never use

it again. He has 3 years to pay off the balance. The interest rate on his card is 26.5%.
At the end of the 3 years, how much interest has he paid?
(Hint - Use the simple interest formula from our worksheets)
Type your answer....

Answer 1

Using the simple interest formula you can calculate the interest, Damian pays as I = P * r * t Where I is the interest, P is the principal (balance), r is the interest rate, and t is the time in years.

Damian would pay $5,043.75 in interest over the 3 year period

So, for Damian, we have $5,043.75 = I = 6,350 * 0.265 * 3