The credit balance in each month without any repayments are shown in the table as attached.
What is the credit card monthly interest rate?
The credit card monthly interest rate is 2%, not that 2% is charged annually, but every month, the interest charged on the balance in the credit card is 2% of the outstanding balance
This means that in month 2, the balance at the beginning of month 2 is computed using the formula below:
month 2 beginning balance=month 1 balance*(1+monthly interest rate)
month 1 balance=$1,000
monthly interest rate=2%
month 2 beginning balance=$1000*(1+2%)
month 2 beginning balance=$1,020.00
month 3 beginning balance=month 2 balance*(1+monthly interest rate)
month 2 balance=$1,020.00
monthly interest rate=2%
month 3 beginning balance=$1020.00*(1+2%)
month 3 beginning balance=$1,040.40
This is the approach to compute the balance at the beginning of each month, however, find attached full question and the filled template of credit card balance below:
Find out more about credit card interest on:https://brainly.com/question/16016267
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Month Total bill in dollars
1 $1,000.00
2 $1,020.00
3 $1,040.40
4 $1,061.21
5 $1,082.43
6 $1,104.08
7 $1,126.16
8 $1,148.69
