Interest is a concept familiar to most people: every credit card in existence has a term called annual percentage rate (APR), which is an interest rate. Suppose you charged $1,000 to a credit card that has a minimum payment each month equal to the interest owed. Can you figure out how much the interest rate is based on this amount?

The formula for simple interest is where I is the amount you will pay in interest, r is the rate at which interest will accrue, P is the principal (amount borrowed), and m is the number of times the interest is applied.

To solve for the interest rate of your credit card, you need to understand which variables in the above formula you have. If your minimum monthly payment is $22 on the $1,000 credit card bill, which variables do you know the values of?

how much is 1.1% of 30000

330

In the given scenario, you know the following values:

P (principal) = $1,000
I (interest) = $22
m (number of times the interest is applied) = 1 (since it's a monthly payment)

The variable you're trying to solve for is r (interest rate).

To solve for the interest rate, we need to identify the variables we know and substitute them into the formula for simple interest.

In this case, the variables we know are:
- I (interest) = $22 (the minimum monthly payment)
- P (principal) = $1,000 (the amount charged to the credit card)

The remaining variable we need to find is the interest rate (r).

The formula for simple interest is: I = (P * r * m)

Since the minimum monthly payment is equal to the interest owed, we can say that I = $22. And as given, P = $1,000.

By rearranging the formula, we can solve for r:

r = (I / (P * m))

However, we are missing the value of 'm', which represents the number of times the interest is applied in a year. Without this information, we cannot determine the exact interest rate.

The credit card company usually provides the annual interest rate (APR) in the terms and conditions. To obtain the interest rate based on the given information, you would need to contact the credit card company and ask for the APR or refer to the credit card statement, agreement, or online account information.