Understanding Credit Card Interest and Payments

What is the annual percentage rate (APR) on Tim's new credit card?

• 21%

• 15%

• 25%

• 19%

How much interest does Tim pay in the first month?

• $12.75

• $10.50

• $15.83

• $18.00

What is Tim's balance at the end of the second month?

• $960.00

• $990.83

• $981.49

• $972.00

How much interest does Tim pay in the third month?

• $15.00

• $16.00

• $14.75

• $15.51

After five months, how much does Tim still owe on his credit card?

• $900.00

• $980.00

• $952.57

• $970.00