Your credit card charges 13% APR and your current balance is $1,400. Calculate the following amounts. Round your answers to two decimal places.

B) How much total interest do you pay?

$ total

To calculate the total interest paid on the credit card balance with a 13% APR, we'll assume the interest is compounded monthly. The formula for the monthly interest is:

\[
I = P \times \left( \frac{r}{12} \right)
\]

Where:
- $ P $ is the principal balance ($1,400),
- $ r $ is the annual percentage rate (13% or 0.13).

### Step 1: Calculate monthly interest rate
The monthly interest rate is:

\[
\frac{13\%}{12} = 0.01083
\]

### Step 2: Calculate the monthly interest amount
\[
I = 1400 \times 0.01083 = 15.16
\]

Thus, the total monthly interest is **$15.16**.

If you want to calculate the total interest paid over a specific number of months or the total for a year, let me know! Would you like a more detailed calculation based on a longer period?

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Here are some related questions to explore:

1. How does the interest change if the APR is reduced to 10%?
2. What would the monthly payment be to pay off the balance in 12 months?
3. How much interest will you pay over 6 months?
4. How does compounding affect total interest paid?
5. What if you make additional payments—how does it impact interest?

**Tip:** Always try to pay more than the minimum on credit card balances to reduce total interest paid.

Your credit card charges 13% APR and your current balance is $1,400. Calculate the following amounts. Round your answers to two decimal places. B) How much total interest do you pay?

Learn how to calculate the monthly interest on a credit card balance of $1,400 with a 13% APR using the formula I = P * (r / 12). Understand key financial concepts like annual percentage rate and compounding interest. Suitable for students in Grades 9-12.

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