Steve was charged $60.00 interest for 1 month on a $3,000 credit card balance. What was the monthly interest rate?
I am needing help with the same question I cannot figure out the formula for this word problem
Interest = Principal*rate*time
I=PRT , so
R = I/(PT)
= 60/(3000*1)
= .02
so the annual rate is 2% and the annual rate would be 24%
(WOW, get rid of that card!)
I think Reiny means the MONTHLY interest is 2%.
Noh it 4 pecent
To find the monthly interest rate, we need to divide the amount of interest charged by the credit card balance. In this case, Steve was charged $60.00 interest on a $3,000 credit card balance.
So, the monthly interest rate can be calculated using the formula:
Monthly Interest Rate = (Interest Charged / Credit Card Balance) * 100
Plugging in the given values, we get:
Monthly Interest Rate = (60.00 / 3000) * 100
Dividing 60.00 by 3000 gives us 0.02.
Multiplying 0.02 by 100 gives us a monthly interest rate of 2%.
Therefore, the monthly interest rate on Steve's credit card balance is 2%.