Question

Solve.Assume that Visa charges Francesca 1.4% per month on her unpaid balance. Find the interest owed to Visa when her unpaid balance for the month is $1,230.

Answer 1

For a given unpaid balance B and an interest rate r, the interest owed is given by the formula I = r*B

For B = $1230 and r = 0.014, we have I = 0.014*1230 = $17.22