Find the monthly simple interest payment for a credit card with a balance of $1200 and a yearly interest rate of 27%.
Unitary Method
The word “unitary” comes from the word “unit”, which means a single and complete entity. In this method, we find the value of a unit product from the given number of products, and then we solve for the other number of products.
Speed, Time, and Distance
Imagine you and 3 of your friends are planning to go to the playground at 6 in the evening. Your house is one mile away from the playground and one of your friends named Jim must start at 5 pm to reach the playground by walk. The other two friends are 3 miles away.
Profit and Loss
The amount earned or lost on the sale of one or more items is referred to as the profit or loss on that item.
Units and Measurements
Measurements and comparisons are the foundation of science and engineering. We, therefore, need rules that tell us how things are measured and compared. For these measurements and comparisons, we perform certain experiments, and we will need the experiments to set up the devices.
Given that the outstanding balance of the credit card is $1200.
The annual interest rate is 27% = 0.27.
Since there are 12 months in a year, to get the monthly interest rate, we divide the annual interest rate by 12.
Hence, the monthly interest rate is .
Since we are calculating the interest amount for one month, time period is 1.
Thus, we have the principal balance P = $1200, monthly interest rate R = and time period in months T = 1.
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