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
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.
To find the annual interest rate on the credit card, we can use the formula provided in the question:
85 = 6000/12 * r
First, we need to solve for the monthly interest rate, which is represented by r. We do this by rearranging the equation:
85 = 500 * r
Next, we can isolate r by dividing both sides of the equation by 500:
r = 85/500
Now, we can calculate the value of r:
r = 0.17
So, the monthly interest rate is 0.17. To find the annual interest rate, we need to multiply the monthly rate by 12:
0.17 * 12 = 2.04
Therefore, the annual interest rate on the credit card is 2.04 or 204%.