Question

Barbara opens a credit card with an APR of 19.99%. How much is charged in interest this month if her balance is $1250?

$19.99

$20.82

$249.88

$16.66

Answer 1

1250 = old balance (1+r/12)

interest added is the difference between the old and new balance

Answer 2

interest added = 1250 - old balance

old balance = 1250/k

i = 1250 - 1250/k

i = 1250( 1 - 1/k)

Answer 3

or if im misreading the question, the old balance is 1250 and they want to know how much interest is added to get the new balance ... or just

1250 - 1250k

Answer 4

either way i get about 20 and change