Question

Barbara opens a credit card with an apr of 19.99 how much is charged in interest this month if her balence is 1250?a. $19.99b. $20.82c. $249.88d. $16.66

Answer 1

b. $20.82

Step-by-step explanation:

The APR is the annual percent rate on a credit card. That is, Barbara's credit card has a 19.99% annual interest rate. In order to find the amount charged in interest for this month, we must find her monthly interest rate (m):

`m = (APR)/(12)\\m = (19.99\%)/(12)\\m=1.666\%`

Since her balance is 1250, her monthly interest is:

`I = B*m\\I = \$1250 *1.666\%\\I=\$20.82`

The answer is b. $20.82