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

Answer 1

$97.15.

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 credit card charges 3.35% monthly interest.

`I=PrT`, where,

`I=\text{Amount of interest}`,

`P=\text{Principal amount}`,

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

`T=\text{Time}`

Let us convert our given rate in decimal form.

`3.35\%=(3.35)/(100)=0.0335`

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

`I=2900*0.0335*1`

`I=2900*0.0335`

`I=97.15`

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