Question

Jasmine's credit card has a $2,000 balance that she carried over from last month. assuming her credit card charges an 18 percent annual interest rate, how much will her interest charges be this month?

Answer 1

Using simple interest, it is found that her interest charge this month will be of $30.

Simple Interest

Simple interest is used when there is a single compounding per time period.

The amount of interest after t years in is modeled by:

I(t) = Prt

In which:

• P is the initial amount.

• r is the interest rate, as a decimal.

In this problem, considering the time in years, the parameters are:

$P = 2000, r = 0.18, t = \frac{1}{12}$

Hence:

$I(t) = 2000 \times 0.18 \times \frac{1}{12} = 30$

Her interest charge this month will be of $30.

More can be learned about simple interest at brainly.com/question/25296782