Question

what is the monthly interest payment for an account with a balance of $180.00 and an a.p.r. of 12%? $? round to the nearest cent.

Explanation:

Step1: Convert APR to monthly rate

The annual percentage rate (APR) is 12%, so the monthly interest rate \( r \) is the APR divided by 12.
\( r=\frac{12\%}{12}=\frac{0.12}{12} = 0.01 \)

Step2: Calculate monthly interest payment

The monthly interest payment \( I \) is calculated by multiplying the account balance \( P \) by the monthly interest rate \( r \). The account balance \( P = \$180.00 \).
\( I = P\times r=180\times0.01 = 1.8 \)

Answer:

\( \$1.80 \)