Question

What is the monthly interest payment for an account with a balance of $200.00 and an A.P.R. of 18%?


A.$11.11

B.3.00

C.$16.67

D.$36.00

Answer 1

Answer:

B.3.00

Explanation:

APR refers to the annual percentage of interest charged on credit.

If APR is 18%, the monthly interest payments will require obtaining a monthly rate.

The monthly rate = 18%/ 12 =1.5%

Monthly interest = p x r x t

where p=$200: r 1.5% or 0.015: t 1 month

=200 x0.015 x 1

=3