The formula for simple interest is where I is the amount you will pay in interest, r is the rate at which interest will accrue, P is the principal (amount borrowed), and m is the number of times the interest is applied.
To solve for the interest rate of your credit card, you need to understand which variables in the above formula you have. If your minimum monthly payment is $22 on the $1,000 credit card bill, which variables do you know the values of?
2 answers
i have no idea
Suppose you purchase a plasma screen television for $1100.00 with a First Premier credit card that has 79.9% APR. Assuming simple interest and no monthly payments, how much interest will you owe at the end of 12 months? What will the total cost of the television be?
1 answer