what is the monthly interest payment for an account with a balance of $300.00 and an a.p.r. of 20%? $? round…

Answer:

$5.00

Explanation:

Step1: Convert APR to monthly rate

The annual - percentage - rate (APR) is 20% or 0.20 in decimal form. To get the monthly interest rate $r$, divide the APR by 12. So $r=\frac{0.20}{12}$.

Step2: Calculate monthly interest payment

The formula for simple interest is $I = Prt$, where $P$ is the principal amount, $r$ is the interest rate, and $t$ is the time. Here, $P = 300$, $r=\frac{0.20}{12}$, and $t = 1$ month. So $I=300\times\frac{0.20}{12}=300\times\frac{1}{60}=5$.