Question

Andy has a remaining balance of $315 on his credit card. His credit card company has an APR of 18 percent. How much will Andy pay in interest for one month?

Answer 1

`color(blue)($4.73)`

Explanation:

First, take his original balance and multiply it by the APR to find how much he will pay in one year:
`315 * 0.18 = 56.7`

Then, because there are 12 months in a year, divide this number by 12 to find his interest for one month:
`56.7/12 = 4.725`
Rounded to the nearest cent is `color(blue)($4.73)`.