SOLUTION: Elaine was charged $195 interest for 1 month on $1,000 credit card balance. What was the monthly interest rate? Am I supposed to multiply $1,000 by $195????

Algebra ->  Customizable Word Problem Solvers  -> Finance -> SOLUTION: Elaine was charged $195 interest for 1 month on $1,000 credit card balance. What was the monthly interest rate? Am I supposed to multiply $1,000 by $195????      Log On

Ad: Over 600 Algebra Word Problems at edhelper.com


    

Question 78703: Elaine was charged $195 interest for 1 month on $1,000 credit card balance. What was the monthly interest rate?
Am I supposed to multiply $1,000 by $195????
Answer by checkley75(3666) About Me  (Show Source):
You can put this solution on YOUR website!
NO!
WHAT YOU NEED TO DO IS DIVIDE 195 BY 1000
195/1000=.195 OR 19.5% IS THE MONTHLY INTEREST RATE.