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Please help me!
Farrah opens a credit card with an APR of 17.75% compounded monthly. How much is charged in interest this month if her balance is $1,750?
$17.75
$25.89
$145.83
$310.63

Harold opened a credit card at a department store with an APR of 14.55% compounded monthly. What is the APY on this credit card?

A. 15.56%
B. 29.10%
C. 1.21%
D. 18.93%

Respuesta :

altavistard
Farrah opens a credit card with an APR of 17.75% compounded monthly. How much is charged in interest this month if her balance is $1,750? 

The interest rate charged per period (that is, every month) is 0.1775/12, or 0.15.

Thus, if her initial balance were $1750, the first month's interest would be

0.15($1750) = $25.89.