A credit card advertises an annual interest rate of 23%. What is the equivalent monthly interest rate?

Given:

A credit card advertises an annual interest rate of 23%.

To find:

The equivalent monthly interest rate.

Solution:

We know that,

1 year = 12 months

It is given that, the credit card advertises an annual interest rate of 23%. So, the equivalent monthly interest rate is:

Therefore, the equivalent monthly interest rate is and the approximate equivalent monthly interest rate is 1.9167%.

the final amount you will pay is $68.04.

the tip is determined by the pre-tax amount, so we calculate the tip based on the original bill, not after we've added sales tax.

to find the tip:

we can divide 54.00 by 100 to get 1% of 54. then we multiply that by 18.

54 / 100 = .54

.54 x 18 = 9.72

tip = 9.72$

to find the tax:

we can divide 54.00 by 100 to get 1% of 54. then we can multiply that by 8 to get 8%.

54 / 100 = .54

.54 x 8 = 4.32

tax= 4.32

now we can add the tip and tax to the bill to get our total.

54 + 9.72 + 4.32 = 68.04

total: $68.04

step-by-step explanation: