Question

Suppose you maintain an average balance of $900 on your credit card.

If the annual interest rate is 18%, how much do you owe in interest per
month? Assume monthly interest rate is 1/12 of annual interest rate.
Round your answer to the nearest cent.

Answer 1

$13.50

Explanation:

The monthly rate is 18%/12 = 1.5%

So, the amount of interest is 900(1.5/100) = $13.50.