Your credit card charges 21% APR and your current balance is $2,200. Calculate the following amounts. Round your answers to two decimal places.

A) How much total interest do you pay?

$ total interest
Hint: The interest paid is the sum of all payments minus the original balance.

To calculate the total interest paid, we need more information such as the duration over which you will pay off the balance and whether the minimum monthly payments are made or a different payment schedule is followed. However, I will walk you through the general approach:

### Steps to calculate the total interest:

1. **Monthly Interest Rate Calculation**:
   - The Annual Percentage Rate (APR) is 21%, so the monthly interest rate is:
   \[
   \text{Monthly Interest Rate} = \frac{21\%}{12} = \frac{0.21}{12} \approx 0.0175 \, \text{or} \, 1.75\%
   \]

2. **Interest Accumulation**:
   If no payments are made and only interest accumulates for one year, the interest formula is:
   \[
   \text{Interest} = \text{Balance} \times \text{APR}
   \]
   Substituting the values:
   \[
   \text{Interest} = 2200 \times 0.21 = 462 \, \text{dollars}
   \]
   So, if the balance remained the same for a year, you would pay $462 in interest.

This gives you an estimate of how much interest will accrue. If you're making payments, then the total interest paid depends on your repayment plan.

Would you like to clarify how long you're paying off the balance or have additional details about your payments?

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**Related Questions:**
1. What is the total amount paid after one year if only interest accumulates?
2. How does the total interest change with different repayment plans?
3. What would be the monthly payment required to avoid increasing the balance?
4. How much interest would be saved by paying off the balance within 6 months?
5. How does the APR affect total interest paid over 1, 2, and 3 years?

**Tip**: Always aim to pay more than the minimum payment to reduce overall interest.

Your credit card charges 21% APR and your current balance is $2,200. Calculate the following amounts. Round your answers to two decimal places.
A) How much total interest do you pay?
$ total interest
Hint: The interest paid is the sum of all payments minus the original balance.

Learn how to calculate the total interest for a credit card balance of $2,200 with an APR of 21%. Follow a step-by-step approach, including key concepts like interest rate calculation, APR, and simple interest formula. Suitable for students in Grades 9-12.

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