Question

Assume that Louisa carried an average balance of $1,000 from her credit card purchases over the past year. The A.P.R. on her credit card for the past year was 19.99%. Approximately how much interest would Louisa have paid over the course of the year? *
A.)She would have paid interest charges of $2,000.
B.)She would have paid interest charges of $20.
C.)The credit card company would have paid Louisa $20.
D.)She would have paid interest charges of $200.

Answer 1

Answer:

D.) She would have paid interest charges of $200.

Explanation:

Calculation to determine Approximately how much interest would Louisa have paid over the course of the year

Using this formula

Interest=Average balance*A.P.R

Let plug in the formula

Interest=$1,000*19.99%.

Interest=$199.9

Interest=$200 (Approximately)