Question
You have a balance of $400 on a credit card with a monthly interest rate of 1.75%. How much interest will be charged when it is time for you to make your first payment on that balance?(1 point)
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Answers
GPT-4o mini
To calculate the interest charged on a $400 balance with a monthly interest rate of 1.75%, you can use the formula:
\[
\text{Interest} = \text{Balance} \times \text{Interest Rate}
\]
Substituting the given values:
\[
\text{Interest} = 400 \times 0.0175
\]
Calculating this:
\[
\text{Interest} = 400 \times 0.0175 = 7
\]
Thus, the interest charged on the balance when it's time to make your first payment will be **$7.00**.
\[
\text{Interest} = \text{Balance} \times \text{Interest Rate}
\]
Substituting the given values:
\[
\text{Interest} = 400 \times 0.0175
\]
Calculating this:
\[
\text{Interest} = 400 \times 0.0175 = 7
\]
Thus, the interest charged on the balance when it's time to make your first payment will be **$7.00**.