How much interest will you have to pay for a credit card bal

How much interest will you have to pay for a credit card balance of $678 that is 1 month overdue, if a 22 percent annual rate is charged?

Interest rate per month is given by:

= 1/12(20%)

=1/12*20/100

= 0.0833 * 0.2

= 0.016 interest rate per month.

Now

678 * 0.016 = 10.848

678 + 10.848 = 688.84

Now again 688.84 * 0.016 = 11.021

So net interest charges = 10.848 + 11.021

= 21.869 $