Find the monthly interest payment in the situation described below. Assume that the monthly interest rate is 

1 divided by 121/12 

of the annual interest rate.

You maintain an average balance of 

​$375375 

on your credit​ card, which carries 

aa 

2424​% 

annual interest rate.

Question content area bottom

Part 1

The monthly interest payment is 

​$enter your response here. 

​(Type an integer or a​ decimal.)

To calculate the monthly interest payment, use the formula:

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

### Step 1: Calculate the Monthly Interest Rate
The monthly interest rate is the annual interest rate divided by 12:

\[
\text{Monthly Interest Rate} = \frac{24\%}{12} = 2\% = 0.02
\]

### Step 2: Calculate the Monthly Interest Payment
The average balance is $375, so:

\[
\text{Monthly Interest Payment} = 375 \times 0.02 = 7.50
\]

### Final Answer:
The monthly interest payment is **$7.50**.

Find the monthly interest payment in the situation described below. Assume that the monthly interest rate is 1 divided by 12 of the annual interest rate. You maintain an average balance of $375 on your credit card, which carries a 24% annual interest rate. The monthly interest payment is $enter your response here.

Calculate the monthly interest payment on a $375 average credit card balance with a 24% annual interest rate. Learn how to apply the interest calculation formula and percentage concepts to determine the monthly cost. This detailed explanation is suitable for high school students in Grades 10-12.

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