Question

Your friend, Isabel, has a credit card with an APR of 19.9%! How many dollars would she pay as a finance charge for just 1 month on a $1000 charge?
Express your answer rounded to the nearest cent.

Answer 1

Answer:

$16.583

Step-by-step explanation:

Given :Your friend, Isabel, has a credit card with an APR of 19.9%!

To Find : How many dollars would she pay as a finance charge for just 1 month on a $1000 charge?

Solution:

We are given that finance charge for just 1 month on a $1000 charge.

So, Finance charge = $\frac{19.9\% \times 1000}{12}$

Finance charge = $\frac{\frac{199}{1000}\times 1000}{12}$

Finance charge = $\frac{199\times 1000}{12}$

Finance charge = $16.583$

Hence she pay $16.583 as a finance charge for just 1 month on a $1000 charge.