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Sagot :
Let's break down how to calculate the finance charge on a credit card with the given balance and APR.
1. Identify the given values:
- The balance on the account is [tex]$660.30. - The Annual Percentage Rate (APR) is 6.2%. 2. Convert the APR to a decimal form: - APR of 6.2% can be written as 0.062 in decimal form. 3. Determine the monthly interest rate: - The APR is an annual rate. To find the monthly interest rate, you divide the APR by 12 (the number of months in a year). - Thus, the monthly interest rate is \( \frac{0.062}{12} = 0.005166666666666667 \). 4. Calculate the finance charge: - The finance charge is determined by multiplying the balance by the monthly interest rate. - Therefore: \[ \text{Finance Charge} = \text{Balance} \times \text{Monthly Interest Rate} = 660.30 \times 0.005166666666666667 \approx 3.4115499999999996 \] Thus, the finance charge on the credit card account with a balance of $[/tex]660.30 at an APR of 6.2% is approximately $3.41.
1. Identify the given values:
- The balance on the account is [tex]$660.30. - The Annual Percentage Rate (APR) is 6.2%. 2. Convert the APR to a decimal form: - APR of 6.2% can be written as 0.062 in decimal form. 3. Determine the monthly interest rate: - The APR is an annual rate. To find the monthly interest rate, you divide the APR by 12 (the number of months in a year). - Thus, the monthly interest rate is \( \frac{0.062}{12} = 0.005166666666666667 \). 4. Calculate the finance charge: - The finance charge is determined by multiplying the balance by the monthly interest rate. - Therefore: \[ \text{Finance Charge} = \text{Balance} \times \text{Monthly Interest Rate} = 660.30 \times 0.005166666666666667 \approx 3.4115499999999996 \] Thus, the finance charge on the credit card account with a balance of $[/tex]660.30 at an APR of 6.2% is approximately $3.41.
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