The answer is A. 55. Explanation: For the 35%, take your 200 and divide it by 2 to yield two 100's. Since 35% equates to a portion of 100%, grab 35 from each 100 and sum them up to reach 70. For the proportion of 3/8, divide which results in 0.375 then multiply by 200 to ascertain that 75 are yellow tags. Adding 75 to 70 provides a total of 145, which when subtracted from 200 results in 55, indicating there are 55 red tags.
When the present value and number of periods remain the same, but the interest rate is reduced, this results in decreased monthly payments required. Thus, option a) decrease the monthly payment stands true. Monthly payments will rise if the interest rate increases, and they cannot be erased.
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.
