15 formula 5 points felix was given a credit card with an annual rate of 62%. how much would he owe in…

15 formula 5 points felix was given a credit card with an annual rate of 62%. how much would he owe in interest at the end of the month if he did not pay his balance in full and his average daily balance was $160? round to the nearest cent. answer 8.27

15 formula 5 points felix was given a credit card with an annual rate of 62%. how much would he owe in interest at the end of the month if he did not pay his balance in full and his average daily balance was $160? round to the nearest cent. answer 8.27

Answer

Explanation:

Step1: Convert annual rate to monthly rate

The annual interest rate is $62%=0.62$. The monthly - interest rate $r$ is calculated by dividing the annual rate by 12. So $r=\frac{0.62}{12}$.

Step2: Calculate the interest

The formula for simple - interest is $I = Prt$, where $P$ is the principal amount, $r$ is the interest rate, and $t$ is the time. Here, $P = 160$, $r=\frac{0.62}{12}$, and $t = 1$ (1 month). So $I=160\times\frac{0.62}{12}$. $I=\frac{160\times0.62}{12}=\frac{99.2}{12}\approx8.27$

Answer:

$8.27$