If you have $1,000.00 on a credit card and the interest rate is 23.7% per year, how much interest will you pay for one year? (Multiply rather than compound your interest.)
$2,370.00
$23.70
$237.00
$230.70

Question

If you have $1,000.00 on a credit card and the interest rate is 23.7% per year, how much interest will you pay for one year? (Multiply rather than compound your interest.) 
$2,370.00
$23.70
$237.00
$230.70

stamp · Answer

Identify.

I = Prt

P = $1,000

r = 23.7%

t = 1 year

Substitute.

I = 1,000 * 23.7% * 1

Simplify.

I = 1,000 * 0.237 * 1

I = 237

$237