If a mechanic uses his credit card to pay for a compressor that costs $477.95 and does not pay on it until the second month, what will the 1.5% monthly interest charge be at the end of the first month? (1 point) Responses $7.17 $7.17 $12.83 $12.83 $15.43 $15.43 $22.06 $22.06

Answer 1

To calculate the interest charged at the end of the first month, you can use the formula:

\[ \text{Interest} = \text{Principal} \times \text{Rate} \]

In this case:

• Principal = $477.95
• Rate = 1.5% = 0.015

Now, plug in the numbers:

\[ \text{Interest} = 477.95 \times 0.015 = 7.16925 \]

Rounding to two decimal places, the interest charged at the end of the first month would be approximately $7.17.

Therefore, the correct answer is $7.17.