Question

Score <500 501-650 651-750
751-850
Rate (APR) 15.75%
12.5%
9.25%
5.75%
Question
Use the table to answer the question.
If your credit score is 750, how much will you pay in interest by the end of 1 month if you owe $2,375.00?
(1 point)
Responses

$31.17
$31.17

$24.74
$24.74

$18.31
$18.31

$11.38

Answer 1

To find out how much interest you will pay at the end of one month with a credit score of 750, you will use the corresponding APR which is 9.25%.

1. **Convert the APR to a monthly interest rate**:
- Monthly interest rate = Annual Percentage Rate (APR) / 12
- Monthly interest rate = 9.25% / 12 = 0.77% (approximately)

2. **Convert the percentage to a decimal**:
- 0.77% = 0.0077

3. **Calculate the interest for 1 month on the amount owed**:
- Interest = Amount owed × Monthly interest rate
- Interest = $2,375.00 × 0.0077 = $18.27 (approximately)

Since this value isn't an option provided, we can recheck.

1. The monthly rate calculation can be reassessed using:
- Monthly interest rate = 9.25 / 100 / 12
- Monthly interest rate = 0.0925 / 12 ≈ 0.00770833

2. Then calculate the interest:
- Interest = $2,375 × 0.00770833 = $18.303 (approximately)

3. Rounding gives you about **$18.30**.

Thus, the closest response to your calculation should be:

**$18.31**.