Question

Correct Me ! [144.95] <<< My answer . How I got it 500(28.99)=144.95

Brooke opens a credit card with an APR of 28.99%. How much is charged in interest this month if her balance is $500?

$12.08

$24.16

$28.99

$144.95

Answer 1

apr is a compounding interest ... not a simple interest

Answer 2

since APR is compounded monthly, 12 times a year, each month is 1/12 of the APR
\[\text{interest}=B(\frac{apr}{12})\]

Answer 3

in other words, you can simply divide your results by 12