what is the monthly interest payment for an account with a balance of $400.00 and an a.p.r. of 12%? $? round…

what is the monthly interest payment for an account with a balance of $400.00 and an a.p.r. of 12%? $? round to the nearest cent.

what is the monthly interest payment for an account with a balance of $400.00 and an a.p.r. of 12%? $? round to the nearest cent.

Answer

Answer:

$4.00

Explanation:

Step1: Convert APR to monthly rate

Annual - percentage - rate (APR) is 12% or 0.12 in decimal. Monthly interest rate $r=\frac{0.12}{12}=0.01$.

Step2: Calculate monthly interest payment

The balance $P = 400$. The formula for simple - interest is $I=P\times r$. Substitute $P = 400$ and $r = 0.01$ into the formula: $I=400\times0.01 = 4$.