Question

an audio streaming service subscriber pays $16.99 per month for unlimited music and podcast streaming. the subscriber pays for the service using a credit card with a 27.99% apr. if the balance is paid off after one month of interest charges, how much more will have been paid instead of using cash? $0.40 $0.26 $1.27 $4.75

Explanation:

Step1: Calculate monthly interest rate

The annual percentage rate (APR) is \(27.99\%=0.2799\). The monthly interest rate \(r\) is \(\frac{0.2799}{12}\).

Step2: Calculate interest charged

The amount charged on the credit - card is \(P = 16.99\). Using the simple - interest formula \(I=P\times r\), we substitute \(P = 16.99\) and \(r=\frac{0.2799}{12}\).

$$I=16.99\times\frac{0.2799}{12}$$

$$I = 16.99\times0.023325$$

$$I\approx0.40$$

Answer:

\(0.40\)