Question

if i had a $2,100 balance on my credit card, with an apr of 10.55%, calculate how much interest i will pay in a year. clearly show your work.

Answer 1

Given that the balance on my credit card is $2,100,

The balance is the principal, P i.e

`P=\text{\$2,100}`

The annula percentage rate, APR, is 10.55%, i.e

`R=10.55\text{\%}`

The time, T, is 1 year i.e

`T=1\text{ year}`

To find the interest, I, the formula is

`I=\frac{\text{PRT}}{100}`

Substitute the values into the formula above

`\begin{gathered} I=\frac{\text{PRT}}{100} \\ I=(2100*10.55*1)/(100)=(22155)/(100)=\text{ \$221.55} \\ I=\text{ \$221.55} \end{gathered}`

Hence, the interest, I, is $221.55