3. If the typical balance on Lucy's credit card is $650 and the interest rate (APR) on her credit card is 18%, how much in inter

Question

Kruka [31]

2 years ago

5

3. If the typical balance on Lucy's credit card is $650 and the interest rate (APR) on her credit card is 18%, how much in inter

est would you expect Lucy to be charged in a typical month?

Mathematics

1 answer:

Hitman42 [59] · Answer 1 · 2022-08-17T12:31:32+03:00

First we convert the percentage to a decimal number. 18% means 18 out of 100, so 18/100 = 0.18. Since this is a yearly percentage and we want a monthly, we then divide this by 12. 0.18/12 = 0.015. Next we multiply her typical balance, $650, by this decimal. 650(0.015)=$9.75 in interest for that month.