Question

William opens a credit card with an APR of 18.63% compounded monthly. How much is charged in interest this month if his balance is $835?

Answer 1

Interest charged for one month `= $12.96`

Explanation:

`I = P * (1 + r/100)^n - P`

`P = $835, n = 1 mth, r = (18.63/12)% p m`

`I = 835 * (1 + 0.015525)^1 - 835 = $12.96`