Interest Calculations and Balances

The video tutorial explains how Marcus manages his credit card balance with an initial amount of $1,300 and an annual interest rate of 21% compounded monthly. Each month, Marcus makes a payment of $325. The tutorial walks through the process of calculating the monthly interest, additional charges, and ending balance for each month from 2 to 5. It emphasizes converting percentages to decimals for calculations and rounding to the nearest cent. The tutorial also verifies the calculations for accuracy, ensuring the correct balance is carried over to the next month.

What is the annual interest rate on Marcus's credit card?

• 21%

• 18%

• 19%

• 24%

How much interest is charged on Marcus's balance at the end of month 2?

• $20.50

• $22.75

• $25.00

• $21.30

What is the ending balance for Marcus at the end of month 2?

• $1,122.75

• $1,150.00

• $1,100.00

• $1,200.00

What is the interest amount for month 3 after rounding?

• $19.60

• $19.65

• $19.70

• $19.50

What is the ending balance for Marcus at the end of month 3?

• $1,280.00

• $1,300.00

• $1,250.00

• $1,301.40

What is the interest amount for month 4?

• $22.77

• $22.50

• $22.60

• $23.00

What is the ending balance for Marcus at the end of month 4?

• $1,310.00

• $1,329.17

• $1,300.00

• $1,350.00

What is the interest amount for month 5 after rounding?

• $23.20

• $23.25

• $23.26

• $23.30

What is the ending balance for Marcus at the end of month 5?

• $1,458.43

• $1,450.00

• $1,460.00

• $1,440.00

What is the monthly payment Marcus makes on his credit card?

• $325

• $300

• $350

• $375