Andy has a remaining balance of $315 on his credit card. His credit card company has an APR of 18 percent. How much will Andy pay in interest for one month?

1 Answer
Jan 10, 2018

color(blue)($4.73)

Explanation:

First, take his original balance and multiply it by the APR to find how much he will pay in one year:
315 * 0.18 = 56.7

Then, because there are 12 months in a year, divide this number by 12 to find his interest for one month:
56.7/12 = 4.725
Rounded to the nearest cent is color(blue)($4.73).