2. Faith opens a credit card with an APR of 16.50% compounded monthly. How much is charged in interest this month if her balance is \$1,050? (1 point)\$173.25
\$87.50
\$16.50
\$14.44

3. Harold opened a credit card at a department store with an APR of 14.55% compounded monthly. What is the APY on this credit card? (1 point)15.56%
29.10%
1.21%
18.93%

4. Glen is comparing three investment accounts offering different rates.

Account A: APR of 5.80% compounding monthly
Account B: APR of 5.90% compounding quarterly
Account C: APR of 5.85% compounding daily

Which account will give Glen at least a 6% annual yield? (1 point)Account A
Account B
Account C
Account B and Account C

5. Jakob has a previous balance of \$861 on a credit card with a 20.8% APR compounded monthly. If he made a payment of \$73 this month, what is the new balance on his credit card? (1 point)\$1,040.09
\$967.09
\$802.92
\$788.00

6. Larson uses his credit card to purchase a new video game system for \$519.82. He can pay off up to \$225 per month. The card has an annual rate of 15.4% compounded monthly. How much total interest will he pay? (1 point)\$81.39
\$4.72
\$11.57
\$13.94

7. Newton uses a credit card with a 18.6% APR, compounded monthly, to pay for a cruise totaling \$1,920.96. He can pay \$720 per month on the card. What will the total cost of this purchase be? (1 point)\$2,458.98

\$2,278.26

\$1,978.02

\$1,920.96

+1 vote

2. Faith opens a credit card with an APR of 16.50% compounded monthly. How much is charged in interest this month if her balance is \$1,050? (1 point)

A. \$173.25
B. \$87.50
C. \$16.50
D. \$14.44

Given that

Principal =  \$1050

Interest =  16.50% = 0 . 1650

Compounding period = 12

[ Formula : Interest = Principal x Interest / Compounding period ]

substitute Principal , Interest and Compounding period  in the above formula

Interest = \$1050 x .1650 / 12

Simplify

= \$14.4375

= \$14.44

There fore Interest = \$14.44

Option D is right choice

(5)

The principal is \$861 .

Interest rate 20.8% .

Interest is compounded monthly .

Formula for compound interest is

P = principal amount (the initial amount you borrow or deposit) = \$861

r  = annual rate of interest (as a decimal) = 0.208

t  = number of years the amount is deposited = one month = 1/12

A = amount of money accumulated after n years, including interest.

n  =  number of times the interest is compounded per year = 12 times .

He made a payment of \$73 this month , so \$73 has to subtract from net amount .

Balance amount = 875.924 - 73 = 802.924

So the Balance amount is 802.924 .

Option (c) is correct .