Question

Dave charges up to the credit limit of $6,000 each month. The minimum payment is $150. What is the interest charge for the unpaid balance at 18% per year?

A.) $150.00

B.) $60.00

C.) $67.75

D.) $87.75

Answer 1

For the answer to the question above, I believe the answer is $ 88
for the interest charge for the unpaid balance at 18% per year.
This is an easy math.You can also answer the closest to my answer which is
D.) $87.75

Answer 2

Answer:

The answer is option D : $87.75

Step-by-step explanation:

Dave charges up to the credit limit of $6,000 each month. The minimum payment is $150.

After paying the minimum payment, balance remains =

$6000-150=5850$ dollars

APR is 18%.

Monthly rate is = $\frac{18}{12}=1.5$ or 0.015

So, 0.015% of 5850 is = $0.015\times5850=87.75$ dollars

Therefore, the answer is option D : $87.75