Question

9. The annual interest rate is 21%. The balance after the grace period was $700. No

payments were received. What is the interest for the month?

Answer 1

Interest for the month = $12.25

Explanation:

Given:

Amount in bank = $700

Rate of interest per month = 21% / 12 = 0.0175

Find:

Interest for the month

Computation:

Interest for the month = Amount in bank × Rate of interest per month

Interest for the month = $700 × 0.0175

Interest for the month = $12.25