Question

William opens a credit card with an APR of 18.63% compounded monthly. How much is charged in interest this month if his balance is $835?

Answer 1

$12.96

Explanation:

I = P x (1+r/100)^n - P

P = 835, n=1, r=(18.63/12)% per month

I = 835 x (1+0.015525)^1

- 835

I = $12.96

Answer 2

I think you find 18.63% of $835 and then you get your answer. I am pretty sure it is $155.56, hope this helps.