Detailed explanation:
Information provided:
Tran possesses a credit card that allows up to $2000 in spending with an APR of 12%.
In the initial month, Tran incurred charges of $450 and settled $150 within that billing period.
The formula to determine the interest that will accrue for Tran in the first month is (0.012)(300)
Here, 0.01 signifies the monthly interest rate.
The 300 reflects the outstanding balance, as Tran charged $450 but only paid back $150.
56 1/4% = 9/16
I hope this information is useful!
