Question

A credit card has a balance of $2,150.00 with an annual percentage rate of 22.9%. How much interest is charged in a one-month billing period?

Answer 1

Answer: $3.42

Step-by-step explanation:

Interest= Principal x Rate x Time

From the question, Principal =$2,150

Rate= 22.9% annually means per year, to calculate the monthly rate, we divide by 12

=22.9%/12 = 1.908% per month

Time = one month, meaning one month out of 12months = 1/12

I is therefore: 2150 x 1.908% x 1/12

= 2150 × 0.01908 x 0.0833

=$3.42

I hope this is clear, please mark as brainliest answer.