Question

Robert's credit card has a balance of $645.42, but the amount that he needs to pay to bring the card to a $0 balance is $1235.18 because he missed a payment. What is Robert's interest rate?

Answer 1

Robert's interest rate is 91.46%.

Step-by-step explanation:

Given that Robert has $ 645.42 on his credit card balance, but the payment he needs to make to bring his balance to $ 0 is $ 1235.18, the interest rate for non-payment that he has in his account is as follows:

645.42 = 100

1235.18 = X

((1235.18 x 100) / 645.42) = X

191.46 = X

Therefore, since 191.46 - 100 is equal to 91.46, the interest rate that this account has is 91.46%.