what is the monthly interest payment for an account with a balance of $120.00 and an a.p.r. of 10%? $? round…

what is the monthly interest payment for an account with a balance of $120.00 and an a.p.r. of 10%? $? round to the nearest cent.

what is the monthly interest payment for an account with a balance of $120.00 and an a.p.r. of 10%? $? round to the nearest cent.

Answer

Explanation:

Step1: Find the annual interest

The annual interest is calculated by multiplying the balance by the APR. So, the annual interest $I_{annual} = 120\times0.10$. $I_{annual}= 12$

Step2: Find the monthly interest

To find the monthly interest, we divide the annual interest by 12 (since there are 12 months in a year). So, the monthly interest $I_{monthly}=\frac{12}{12}$. $I_{monthly} = 1$

Answer:

$1.00