Question

Becca opens a credit card with an APR of 22.99%. How much is charged in interest this month if her balance is $1750?

$19.16
$22.99
$33.53
$402.33

Answer 1

APR means Annual Percentage Rate. So after a month (which is how much of a year?) the percentage is probably going to be [Balance]*[APR]/[months in year].

Answer 2

The monthly interest rate is 0.2299/12 expressed as a decimal.
Interest for this month is
\[\frac{1750\times 0.2299}{12}=$?\]

Answer 3

Yes, that's correct.