Question

If the typical balance on Lucy's credit card is $750 and the interest rate (APR) on her credit card is 16%, how much in interest would you expect Lucy to be charged in a typical month? About $6.67 About $15.14 About $51.74 About $80.86 About $10.00

Answer 1

Answer: About $10.00

Step-by-step explanation:

1. You have the following information given in the problem:

- The typical balance is $750.

- The interest rate is 16%.

2. To solve this exercise, you must apply the following formula:

$TotalInterest=(Amount)(Rate)(Time)$

Where:

$Amount=750\\Rate=0.16\\Time=\frac{1}{12}$

3. Substitute values:

$TotalInterest=(750)(0.16)(\frac{1}{12})\\TotalInterest=10$

4. Therefore, the result is $10.00.