You have a balance of $1,678.00 on a credit card with a 15.75% APR. How much interest is accrued if you pay nothing on the principal after 3 months? (1 point) Responses $22.02 $22.02 $66.07 $66.07 $264.29 $264.29 $88.10
To calculate the interest accrued on the credit card balance, we can use the formula:
Interest accrued = (Principal balance) x (APR/12) x (Number of months)
In this case, the principal balance is $1,678.00, the APR is 15.75%, and the number of months is 3.
Plugging in these values into the formula, we get:
Interest accrued = ($1,678.00) x (15.75%/12) x (3)
= $1,678.00 x 0.013125 x 3
= $65.61
Rounded to the nearest cent, the interest accrued is $66.07.
Therefore, the correct answer is $66.07.