what is the monthly interest payment for an account with a balance of $480.00 and an a.p.r. of 19%? $? round…

what is the monthly interest payment for an account with a balance of $480.00 and an a.p.r. of 19%? $? round to the nearest cent.

what is the monthly interest payment for an account with a balance of $480.00 and an a.p.r. of 19%? $? round to the nearest cent.

Answer

Explanation:

Step1: Convert APR to monthly rate

The annual - percentage - rate (APR) is 19% or 0.19 in decimal form. To get the monthly interest rate $r$, divide the APR by 12. So $r=\frac{0.19}{12}$.

Step2: Calculate monthly interest payment

The balance of the account is $P = 480$. The formula for simple - interest is $I=P\times r$. Substitute $P = 480$ and $r=\frac{0.19}{12}$ into the formula: $I = 480\times\frac{0.19}{12}$. First, calculate $480\div12 = 40$. Then, $40\times0.19=7.6$.

Answer:

$7.60$