caitlyn has a credit card with a spending limit of $1500 and an apr (annual percentage rate) of 18%. during…

caitlyn has a credit card with a spending limit of $1500 and an apr (annual percentage rate) of 18%. during the first month, caitlyn charged $375 and paid $250 of that in her billing cycle. which expression will find the amount of interest caitlyn will be charged after the first month?\no (0.18)($250)\no (0.18)($375)\no (0.015)($375)\no (0.015)($125)
Answer
Explanation:
Step1: Calculate monthly interest rate
The annual percentage rate (APR) is 18%. To find the monthly interest rate $r$, we divide the APR by 12. So $r=\frac{18%}{12}= 0.015$.
Step2: Calculate the balance on which interest is charged
Caitlyn charged $375$ and paid $250$. The balance $B$ on which interest is charged is $B = 375 - 250=125$.
Step3: Calculate the interest
The interest $I$ is calculated by multiplying the balance $B$ by the monthly - interest rate $r$. So $I=r\times B=(0.015)\times(125)$.
Answer:
$(0.015)(125)$