SOLUTION: How much interest will you have to pay for a credit card balance of $1,022 that is 1 month ​overdue, if an 18% annual rate is​ charged? Round to two decimal places.

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Question 1182559:
How much interest will you have to pay for a credit card balance of $1,022 that is 1 month ​overdue, if an 18% annual rate is​ charged?
Round to two decimal places.

Answer by Theo(13342) About Me  (Show Source):
You can put this solution on YOUR website!
18% annual rate / 12 = 1.5% monthly rate.
if you have 1022 balance at the beginning of the month, the monthly interest charge will be .015 * 1022 = 15.33.
that interest charge is due at the end of the month.
if you miss that payment, that charge is added to the remaining balance, and your interest payment for the next month will be (1022 + 15.33) * .015 = 15.55995.