Ruby Wilson, a student at State College, has a balance of $380 on her retail charge card. If the store levies a finance charge of 21 percent per year, how much monthly interest will be added to Ruby’s account?

Respuesta :

Answer:

$6.65 is the total interest that will be added to ruby 's account

Step-by-step explanation:

As

Balance on retail charge card = $380

Finance charge/ interest rate annually= 21%

So

To find out how much interest will be added to rubby's account we will use following formula

[tex]\frac{intrest \,rate }{number\, of \,payments} \times loan\, principle = intrest[/tex]

no of installments will be 12 as interest is calculated annually

putting values in formula to calculate interest

[tex]interest = \frac{0.21}{12} \times 380\\= 0.0175\times 380\\=6.65[/tex]

so $6.65 is the total interest that will be added to ruby 's account

Keywords: calculating interest

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