A certain credit card carries a 10% simple annual interest rate. If Holly missed her payment one month on an unpaid balance of $840, how much interest will she have to pay?

Question

anonymous · Answer

seven dollars
		
eight dollars and forty cents
		
seventy dollars
		
eighty-four dollars

apoorvk · Answer

okay, 
so principal amount = p = $840
simple interest rate = r = 10% = 0.1
time period = t = 1/12 years (one month that is)

so, simple interest amount = p*r*t 


can you calculate that now?

anonymous · Answer

Yes! Thank you! :D

apoorvk · Answer

You're welcome Sire! ;)