Tran has a credit card with a spending limit of 2 dollars comma 000 and an APR (annual percentage rate) of 12 percent During the first month, Tran charged 450 dollars and paid 150 dollars of that in his billing cycle. Which expression will find the amount of interest Tran will be charged after the first month?
Answer
A
0 point 1 2 times open paren 300 dollars close paren
B
0 point 1 2 times open paren 450 dollars close paren
C
0 point 0 1 times open paren 450 dollars close paren
D
0 point 0 1 times open paren 300 dollars close paren
Explanation
After paying $150 of the $450 charged, Tran has an unpaid balance of $450 − $150 = $300. The monthly interest rate is the 12% annual rate divided by 12 months, or 0.01. Thus the expression is 0.01 × ($300), choice D.
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