Question

andy has a remaining balance of $845 on his credit card. his credit card company has an apr of 18 percent. how much will andy pay in interest for one month?

Answer 1

Answer:  Andy will pay $12.675 in interest for one interest

Step-by-step explanation:

Since we have given that

Remaining balance of Andy on his credit card = $845

APR of his credit card = 18%

So, Rate of interest for one month will be

$\frac{18}{12}=1.5\%$

Interest will be paid for one month is given as

$\frac{1.5}{100}\times 845\\\\=\frac{1267.5}{100}\\\\=\ 12.675$

Hence, Andy will pay $12.675 in interest for one interest .

Answer 2

Ok if the apr is 18 percent and there is 12 months in a year the monthly interest rate would be 1.5%. 

1.5% of 845 is 12.675