Given that the APR is 16%, the monthly interest rate is given by
[tex]i= \frac{(1+ \frac{0.16}{12} )^{12}-1}{12} \\ \\ =\frac{(1+0.0133 )^{12}-1}{12} \\ \\ =\frac{(1.0133 )^{12}-1}{12}= \frac{1.172-1}{12} \\ \\ = \frac{0.1723}{12} =0.01436=1.436\%[/tex]
Therefore, the amount of interest Lucy will be charged in a typical month is given by 0.01436 x $750 = $10.77
