Question

Caitlyn has a credit card with a spending limit of $1500 and an APR (annual percentage rate) of 18%. During the first month, Caitlyn charged $375 and paid $250 of that in her billing cycle. Which expression will find the amount of interest Caitlyn will be charged after the first month?

Answer 1

Answer:

D

Step-by-step explanation:

took the test

Answer 2

APR=18%
Monthly interest = 18/12=1.5%
If Caitlyn paid before due date, 
amount liable for interest charges = 375-250 = $125
Interest charge for the month
=$125*1.5%
=$1.88

If a single expression is required, then
interest = (375-250)*0.018/12 = $1.88  to the nearest cent.