A credit card company charges a 22 annual rate for overdue a

A credit card company charges a 22% annual rate for overdue accounts. How much interest will be owed on a $635 account 1 month overdue?

Solution

Simple Interest = P*R*T

Rate of Interest = 22% = 0.22

Time Period = 1 month = 1/12 years

Interest = 635 * 0.22 * 1/12 = 11.64$