100 points
neeed asap noww
task 2 : interest in finance
interest is a concept familiar to most people : every credit card in existence has a term called annual percentage rate ( apr ) , which is an interest rate . suppose you charged $1,000 to a credit card that has a minimum payment each month equal to the interest owed . can you figure out how much the interest rate is based on this amount ?

the formula for simple interest is l = r x p x m , where l is the amount you will pay in interest , r is the rate at which interest will accrue , p is the principal ( amount borrowed ) , and m is the number of times the interest is applied .

a. to solve for the interest rate of your credit card , you need to understand which variables in the above formula you have . if your minimum monthly payment is $22 on the $1,000 credit card bill , which variables do you know the values of ?

b. manipulate the formula so it will calculate the interest rate you are paying instead of the amount of money you are paying .

c. now that you have a formula that will give you the interest rate , plug in the values for the problem and solve for that interest rate . interest rates are usually represented for a time period : over what time period does this rate apply ? what would the interest rate be if it were yearly rate ?

d. now consider a different situation . payday loans are a type of loan where you can get money for a future paycheck , typically two weeks in advance . a typical payday loan service might charge $15 for a loan against a paycheck you will receive in two weeks . the interest rate is 10% of the paycheck over that two-week period . given this information , which variables in the interest formula are known ? develop a formula that will solve for the unknown variable .

e. solve for the value of the unknown variable .