<u>Lucy would be charged $10 interest in a typical month. </u>
<u> </u>
Further Explanation:
Annual Percentage Rate (APR): The annual percentage rate is the rate of the fee charged on the credit card. It remains the same even in the case of the failure in the credit card payment. The credit card that has the lowest APR should be preferred.
Calculate the interest for a typical month:
APR rate is calculated for an annual basis. The current APR rate is 16% annually. So, it should be divided by 12 months to calculate the interest for a typical month. The calculation of the interest is as follows:
<u>Thus, Lucy would be charged $10 interest in a typical month. </u>
Working note:
Calculate the annual interest:
<u>Thus, the annual interest is $120. </u>
Learn more:
Learn more about the money owed to the credit card company
Learn more about the common credit card fee
Learn more about making on-time minimum payment of credit card
Answer details:
Grade: Senior School
Subject: Business Studies
Chapter: Money & Banking
Keywords: Credit card balance, credit card, $750, interest rate, interest, APR, Annual percentage rate, expect, Lucy, charged, typical month, credit score, would, you, typical balance, expenses.
Answer: Friendly's would say that you were paying an APR of 1485.71%.
We arrive at the answer as follows
First we calculate the dollar interest on the $7 loan and the rate of interest.
This 28.5714% interest is for a loan that lasts for one week.
Since a year has 52 weeks, we can find the APR as .