Caitlyn has a credit card with a spending limit of 1 dollars comma 500 and an APR (annual percentage rate) of 18 percent During the first month, Caitlyn charged 375 dollars and paid 250 dollars of that in her billing cycle. Which expression will find the amount of interest Caitlyn will be charged after the first month?
Answer
A
0 point 1 8 times open paren 250 dollars close paren
B
0 point 1 8 times open paren 375 dollars close paren
C
0 point 0 1 5 times open paren 375 dollars close paren
D
0 point 0 1 5 times open paren 125 dollars close paren
Explanation
Caitlyn charged $375 and paid $250, so her unpaid balance is $375 − $250 = $125. The monthly interest rate is the 18% annual rate divided by 12, or 0.015. Thus, the expression is 0.015 × $125, which is choice D.
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