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If a musician uses his credit card to pay for a new violin that costs $2,900 and does not pay on it until the second month, what will the 3.35% monthly interest charge be at the end of the first month? Show your work

Answer :

Answer:

$97.15.

Step-by-step explanation:

We have been given that a musician uses his credit card to pay for a new violin that costs $2,900 and does not pay on it until the second month. The interest rate of credit card is 3.35% monthly.

We will use interest formula to solve our given problem.

[tex]I=PrT[/tex], where,

[tex]I=\text{Interest}[/tex],

[tex]P=\text{Principal amount}[/tex],

[tex]r=\text{Interest rate in decimal form}[/tex],

[tex]T=\text{Time}[/tex]  

Let us convert our given interest rate in decimal form.

[tex]3.35\%=\frac{3.35}{100}=0.0335[/tex]

Upon substituting our given values in interest formula we will get,

[tex]I=2,900*0.0335*1[/tex]

[tex]I=2,900*0.0335[/tex]

[tex]I=97.15[/tex]

Therefore, the monthly interest charge at the end of the 1st month will be $97.15.

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