Use the table to answer the question.
You have two credit cards. One has a balance of $1,675.00 at a 9.75% APR and the other has a balance of $2,378.00 and is dependent upon your credit score. Your score is 650. How much interest is accrued in the first month?
(1 point)
Responses
$38.38
$38.38
$44.82
$44.82
$31.94
$31.94
$25.01
$25.01
Based on the information given, we can calculate the interest accrued in the first month for the credit card with a balance of $1,675.00 at a 9.75% APR.
Interest = Principal * Rate * Time
In this case, Principal = $1,675.00 and Rate = 9.75%. Since the time period is not specified, we assume it is one month.
Interest = $1,675.00 * 9.75% * 1
Converting the APR to a decimal, we get:
Interest = $1,675.00 * 0.0975 * 1 = $162.52
Therefore, the interest accrued in the first month for the first credit card is $162.52.
None of the given answer choices match this amount, so it seems there may be an error.