How much annual interest would you pay on a $1000 charge with a credit card that has an 18% interest rate?

To determine the annual interest on a $1000 charge with an 18% interest rate, you calculate it by multiplying the principal amount (which is $1000) by the interest rate (expressed as a decimal).

Here’s the calculation:

1. Convert the percentage to a decimal by dividing by 100. This gives you 18% as 0.18.

2. Multiply the principal amount by the decimal interest rate:

( 1000 \times 0.18 = 180 ).

This means the total annual interest you would pay on a $1000 charge is $180. The correct answer reflects this calculation accurately, demonstrating a clear understanding of how to calculate interest based on a given rate.