Question

if i had a $2,100 balance on my credit card, with an apr of 10.55%, calculate how much interest i will pay in a year. clearly show your work.

Answer 1

Given that the balance on my credit card is $2,100,

The balance is the principal, P i.e

$P=\text{\ 2,100}$

The annula percentage rate, APR, is 10.55%, i.e

$R=10.55\text{\%}$

The time, T, is 1 year i.e

$T=1\text{ year}$

To find the interest, I, the formula is

$I=\frac{\text{PRT}}{100}$

Substitute the values into the formula above

$\begin{gathered} I=\frac{\text{PRT}}{100} \\ I=\frac{2100\times10.55\times1}{100}=\frac{22155}{100}=\text{ \ 221.55} \\ I=\text{ \ 221.55} \end{gathered}$

Hence, the interest, I, is $221.55