APR Credit Card

Front

What is APR?

Back

APR stands for Annual Percentage Rate, which is the annual rate charged for borrowing or earned through an investment, expressed as a percentage.

Front

How do you convert a percentage to a decimal?

Back

To convert a percentage to a decimal, divide the percentage by 100. For example, 18% becomes 0.18.

Front

What is the formula to calculate the total amount with interest?

Back

The formula is A = P(1 + r)^t, where A is the total amount, P is the principal amount, r is the interest rate, and t is the time in years.

Front

What does 'r' represent in the equation A = P(1 + r)^t?

Back

In the equation, 'r' represents the interest rate.

Front

If you have a balance of $25 with a 7% APR, how much will you pay with interest?

Back

You will pay $26.75.

Front

If you have a balance of $30 with a 24.4% APR, how much will you pay with interest?

Back

You will pay $37.32.

Front

What is the formula for compound interest?

Back

The formula for compound interest is A = P(1 + r/n)^(nt), where A is the amount of money accumulated after n years, including interest, P is the principal amount, r is the annual interest rate, n is the number of times that interest is compounded per year, and t is the number of years.

Front

How much will Caiden's $475 grow after 15 years at 3.8% compounded annually?

Back

His balance will be $831.10.

Front

What is the principal in the context of loans and investments?

Back

The principal is the initial amount of money borrowed or invested, before interest.

Front

What does it mean for interest to be compounded annually?

Back

Compounded annually means that the interest is calculated and added to the principal once a year.