what is the monthly interest payment for an a...
what is the monthly interest payment for an account with a balance of $600.00 and an a.p.r. of 15%? $? round to the nearest cent.
Answer
# Answer:
$7.50
# Explanation:
## Step1: Convert APR to monthly rate
The annual - percentage - rate (APR) is 15% or 0.15 in decimal form. To get the monthly interest rate $r$, divide the APR by 12. So $r=\frac{0.15}{12}=0.0125$.
## 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, $P = 600$, $r=0.0125$, and $t = 1$ (month). So $I=600\times0.0125\times1 = 7.5$.