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 ​$500 on your credit​ card, which carries an 18​% annual interest rate.
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Part 1
The monthly interest payment is ​$

enter your response here.
​(Type an integer or a​ decimal.)

To find the monthly interest payment, we can use the following steps:

1. **Determine the monthly interest rate**:  
   The annual interest rate is 18%.  
   Since the monthly interest rate is $ \frac{1}{12} $ of the annual rate, we calculate:
   \[
   \text{Monthly Interest Rate} = \frac{18\%}{12} = 1.5\%
   \]
   
2. **Convert the monthly interest rate to a decimal**:  
   \[
   1.5\% = \frac{1.5}{100} = 0.015
   \]

3. **Calculate the monthly interest payment**:  
   The monthly interest payment is given by:
   \[
   \text{Monthly Interest Payment} = \text{Average Balance} \times \text{Monthly Interest Rate}
   \]
   Substituting the values:
   \[
   \text{Monthly Interest Payment} = 500 \times 0.015 = 7.50
   \]

So, the monthly interest payment is **$7.50**.

Would you like any details or have further questions?

Here are 5 related questions:
1. How would the monthly payment change if the annual interest rate were 24%?
2. What would be the monthly payment with a balance of $1000 and an 18% annual rate?
3. How does compound interest affect the total amount paid on a credit card?
4. How is the minimum payment on a credit card generally calculated?
5. What is the difference between APR (Annual Percentage Rate) and monthly interest rate?

**Tip:** Always make sure you understand how interest rates are applied to your credit card balances, as they can significantly affect how much you end up paying over time.

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 ​$500 on your credit​ card, which carries an 18​% annual interest rate. The monthly interest payment is ​$____ (Type an integer or a​ decimal).

Learn how to calculate the monthly interest payment for a credit card with an 18% annual interest rate. This step-by-step guide explains how to determine the monthly interest rate and apply it to a $500 balance, resulting in a monthly payment of $7.50. Perfect for high school students learning about percentages and financial literacy.

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