Question

An invoice states that interest will be charged on overdue accounts at the rate of 1% per month. What will the interest charges be on a $3760 billing that is three months overdue?

Answer 1

3760 * 0.01 * 3 = ?

Answer 2

112.0

Answer 3

[AI-generated answer — Explain Bot]

To calculate the interest charges on a $3760 billing that is three months overdue, you can follow these steps:

1. Determine the monthly interest rate: Since the interest rate is given as 1% per month, divide it by 100 to convert it to a decimal: 1% / 100 = 0.01.

2. Calculate the interest charges for one month: Multiply the outstanding balance by the monthly interest rate: $3760 * 0.01 = $37.60.

3. Calculate the interest charges for three months: Multiply the interest charges for one month by the number of months (in this case, three): $37.60 * 3 = $112.80.

Therefore, the interest charges on a $3760 billing that is three months overdue will be $112.80.