You maintain an average balance of $1950 on your credit card, which carries a 12% annual interest rate what is the monthly interest payment is

To calculate the monthly interest payment on your credit card, we can use the following formula:

\[
\text{Monthly Interest Payment} = \frac{\text{Annual Interest Rate}}{12} \times \text{Average Balance}
\]

Given:
- Average Balance = $1950
- Annual Interest Rate = 12% or 0.12

Now, plug in the values:

\[
\text{Monthly Interest Payment} = \frac{0.12}{12} \times 1950
\]

\[
\text{Monthly Interest Payment} = 0.01 \times 1950 = 19.50
\]

So, the monthly interest payment is **$19.50**.

Would you like more details or have any questions? Here are some related questions you might find useful:

1. How does the interest rate on a credit card affect overall debt?
2. What is the difference between simple interest and compound interest?
3. How can paying more than the minimum payment reduce the total interest paid?
4. What strategies can be used to pay off credit card debt faster?
5. How does the average daily balance method compare to the adjusted balance method?

**Tip:** Paying off your balance in full each month can help you avoid paying interest altogether.

Discover how to calculate the monthly interest payment on a credit card with an average balance of $1950 and a 12% annual interest rate. This problem involves understanding interest calculation and percentages.

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