To calculate the interest on a credit card balance, you need to determine the monthly interest rate first.
The annual interest rate is 18%, so the monthly interest rate can be calculated by dividing the annual interest rate by 12 (since there are 12 months in a year).
Monthly interest rate = Annual interest rate / 12 = 18% / 12 = 1.5%
Next, calculate the interest for 1 month overdue by multiplying the credit card balance by the monthly interest rate:
Interest = Credit card balance * Monthly interest rate
Interest = $1016 * 1.5% = $15.24
Therefore, you will have to pay $15.24 in interest for a credit card balance of $1016 that is 1 month overdue with an 18% annual interest rate.
How much interest will you have to pay for a credit card balance of 1016$ that is 1 month overdue, if 18% annual rate is charged?
1 answer