Posted by **Dan** on Tuesday, February 18, 2014 at 5:01pm.

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?

## Answer this Question

## Related Questions

- Math - Interest is a concept familiar to most people: every credit card in ...
- Intermediate Algebra - Suppose you have a credit card debt of $6000. Last month...
- Finance - Due to poor spending habits, Bryant has accumulated $5,000 in credit ...
- Math - The formula for simple interest is where I is the amount you will pay in ...
- consumer math - 1. Which of the following is an advantage of using credit cards...
- Computer science - Paying Off Credit Card Debt Each month, a credit card ...
- computer programming - Paying Off Credit Card Debt Each month, a credit card ...
- Finance - As a college student, you probably receive many credit card offers in...
- Finance - Rick has a credit card that charges 19% interest compounded monthly. ...
- Interest - It’s time to go shopping! You grab your Best Purchase credit card, ...