3. If the typical balance on Lucy's credit card is $650 and the interest rate (APR) on her credit card is 18%, how much in interest would you expect Lucy to be charged in a typical month?

Question

Mathematics

Uriel Frye

7 March, 14:13

3. If the typical balance on Lucy's credit card is $650 and the interest rate (APR) on her credit card is 18%, how much in interest would you expect Lucy to be charged in a typical month?

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Desirae Lawrence · Answer 1

First we convert the percentage to a decimal number. 18% means 18 out of 100, so 18/100 = 0.18. Since this is a yearly percentage and we want a monthly, we then divide this by 12. 0.18/12 = 0.015. Next we multiply her typical balance, $650, by this decimal. 650 (0.015) = $9.75 in interest for that month.