MATH SOLVE

4 months ago

Q:
# If the typical balance on Lucy's credit card is $650 and the interest rate (APR) on her credit card is 18%, how much in interest would you expect Lucy to be charged in a typical month

Accepted Solution

A:

$9.75Further explanation
Given:
The typical balance on Lucy's credit card is $650.The interest rate (APR) on her credit card is 18%.Question: How much in interest would you expect Lucy to be charged in a typical month?
The Process:
This problem includes the type of determining simple interest.
[tex]\boxed{ \ I = P \times r \times t \ }[/tex]
where,I = simple interestP = principal (initial amount)
r = annual interest rate
t = time (in years)
This time we will find out how much in interest we would expect to be charged in a typical month.The data is as follows:
P = 650r = 18% or [tex]\frac{18}{100}[/tex] or 0.18
t = [tex]\frac{1}{12}[/tex] year (one month)Let us calculate how much in interest we would expect to be charged in a typical month.[tex]\boxed{ \ = 650 \times \frac{18}{100} \times \frac{1}{12} \ }[/tex]
[tex]\boxed{ \ = 65 \times \frac{3}{10} \times \frac{1}{2} \ }[/tex]
[tex]\boxed{ \ = \frac{195}{10} \times \frac{1}{2} \ }[/tex]
[tex]\boxed{ \ = \frac{97.5}{10} \ }[/tex]
[tex]\boxed{ \ = \frac{975}{100} \ }[/tex]
Thus the amount of interest we would expect Lucy to be charged in a typical month is $ 9.75._ _ _ _ _ _ _ _ _ _Notes We must be able to distinguish between simple and compound interest. Please learn about this in the link attached below.
Learn more
What interest (in dollars) does he receive annually? How much will our account accrue to in 9.5 years
What is the total amount owed at the end of the 4 years