Question

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?

Answer 1

General Idea:

$Amount \; Charged \; in \; a \; Month \; = \; Monthly \; Interest \; Rate \; \times Typical \; Creditcard\; Balance$

$Amount \; Charged \; in\; a\; month =\frac{18\%}{12} \times 650 \; = 0.015\times650=9.75$

Conclusion:

Amount of interest that Lucy to be charged in a typical month is $9.75

Answer 2

(18%\12)x650=9.75 18 divide by 12 times 650