darkvoid07
contestada

A bank charges 18.12% interest per year on a credit card account. Jose' closed his account and has a balance of $529.84 that he needs to pay off. How much interest will Jose' pay in the first month of paying off his balance?

Respuesta :

SaniShahbaz

Answer:

Jose will pay $8 as interest in the first month of paying off hi balance.

Step-by-step explanation:

With $529.84 in his account that he has to pay,  there is a 18.12% interest per year. So, the monthly interest rate on the credit card can be calculated by using the general formula :

[tex]Monthly interest rate = Annual interest rate / 12[/tex]

Monthly interest rate = 18.12% / 12

Monthly Interest rate = 9.06%

Jose must pay an interest of $8 in the first month. As the account is closed this amount will not be added to the credit card account.

zainebamir540

Answer:

$8 monthly interest in the first month

Step-by-step explanation:

From the mentioned , bank charges interest of 18.12% interest annually,  while Jose has balance of  $529.84,

One month interest will be.  

= 529.84 x 18.12% x 1/12 (one month)

= 529.84 x  0.1812 x 0.083

= 8.00

Thus, he has to pay $8 monthly interest.