Worded kind of weird:
A chartered bank is raising the interest rate on its Visa credit card from 7% to 8%. What will be the percent increase in the interest charges on a given balance?
2007-02-20 17:14:45 · 3 answers · asked by Anonymous in Science & Mathematics ➔ Mathematics
(8-7)/7=14.29%
2007-02-20 17:20:03 · answer #1 · answered by Christopher S 1 · 0⤊ 0⤋
I tried some samples first and then I generalized to an equation.
If the balance was $100, then at 7% the interest is $70.
If the balance was $100, then at 8% the interest is $80.
So you would pay $10 more interest. If you take the raise in interest and divide it by the original interest you get 10/70 which is 1/7 or .1428 or about 14%. When I did this same thing with other amounts I always get the answer of 1/7
Generalizing : Let A be the balance amount then to find the percent on increase (.08A -.07A)/.07A and this will give 1/7.
2007-02-20 17:27:07 · answer #2 · answered by lizzie 3 · 0⤊ 0⤋
( 7/8 ) * 100 %
2007-02-20 17:17:28 · answer #3 · answered by gjmb1960 7 · 0⤊ 0⤋