Question

If a musician uses his credit card to pay for a new violin that costs $2,900 and does not pay on it until the second month, what will the 3.35% monthly interest charge be at the end of the first month? Show your work

Answer 1

Answer:

$97.15.

Step-by-step explanation:

We have been given that a musician uses his credit card to pay for a new violin that costs $2,900 and does not pay on it until the second month. The interest rate of credit card is 3.35% monthly.

We will use interest formula to solve our given problem.

$I=PrT$, where,

$I=\text{Interest}$,

$P=\text{Principal amount}$,

$r=\text{Interest rate in decimal form}$,

$T=\text{Time}$  

Let us convert our given interest rate in decimal form.

$3.35\%=\frac{3.35}{100}=0.0335$

Upon substituting our given values in interest formula we will get,

$I=2,900*0.0335*1$

$I=2,900*0.0335$

$I=97.15$

Therefore, the monthly interest charge at the end of the 1st month will be $97.15.