Intermediate Algebra

Suppose you have a credit card debt of $6000. Last month, the bank charged you $85 interest on the deb. The solution to the equation is 85=6000/12 r represents the annual interest rate on the credit card. Find the annual interest rate on the credit card.

85*12=1020
1020/6000 =17% annual interest rate.

Please check

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  1. simple interest formula:

    I = PRT, lets plug in our values

    85 = 6000(R)(1/12)
    multiply both sides by 12
    1020 = 6000R
    divide both sides by 6000
    R = 1020/6000 = .17 or 17%

    You had the correct answer, but you should not just piece-meal bits and pieces from the equation.

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    posted by Reiny

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