Question

Edmund's credit card has an unpaid balance of $598. The annual percentage rate is 18%. What will the finance charge for one month on this amount?

Answer 1

Answer:

After the passage of one month, the finance charge that Edmund must pay will be $ 8.97.

Step-by-step explanation:

Given that Edmund has an unpaid balance of $ 598 on his credit card, and that said credit card has an annual interest of 18% on the unpaid balances, to determine how much he will have to pay after a month of expiration of his debt, it is necessary to perform the following calculation:

12 = 18

1 = X

18/12 = X

1.5 = X

(598 x 1.5 / 100) + 598 = X

8.97 + 598 = X

606.97 = X

Thus, after the passage of one month, the finance charge that Edmund must pay will be $ 8.97.