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.
a. 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?
Type your response here:
The amount borrowed and the I the amount you will pay in interest

Right.

To solve for the interest rate of your credit card, you need to understand which variables in the formula you have. From the given information, we know the following variables:

P (principal, amount borrowed): $1,000
I (amount you pay in interest): Unknown

So, we have the values for P and we need to find the value for I. By rearranging the formula for simple interest, we can solve for the interest rate (r):

I = Prm

Since we know P ($1,000) and I is the amount of the minimum monthly payment ($22 in this case), we can substitute these values into the formula:

$22 = $1,000 * r * m

However, we do not currently have the value for m (the number of times interest is applied). To determine m, we need more information about the credit card's terms and conditions.

Once we know the value of m, we can solve for the interest rate (r) by rearranging the equation:

r = $22 / ($1,000 * m)

So, with the given values, we can calculate the interest rate once we have the value for m.