Question

Calculating credit card interest. Ryan Gray, a student at State College, has a balance of $380 on his retail charge card; if the store levies a finance charge of 21 percent per year, how much monthly interest will be added to his account?

Answer 1

$6.65

Step-by-step explanation:

Annual Interest = 21%

Monthly Interest = 21%/12 = 1.75%

So the monthly interest that will be added to Ryan's account would be

Monthly Interest = $380 x 1.75%

Monthly Interest = $6.65