Question If a musician uses his credit card to pay for a new violin that costs $2,900 and does not pay on it until the second month, what will the 3.35% monthly interest charge be at the end of the first month? Show your work or explain how you got your answer.

write the answer with this:
Sample work and explanation:
The monthly interest charge is of your balance.
% =/100 =
Find Monthly interest charge:
() () = $
The monthly interest charge is $.

1 answer

To calculate the monthly interest charge on the credit card balance for the violin, we will follow the steps outlined in the sample work.

  1. Determine the monthly interest rate:
    The annual interest rate is given as 3.35%, so we convert it to a monthly rate by dividing by 100:
    \[ \text{Monthly Interest Rate} = \frac{3.35}{100} = 0.0335 \]

  2. Find the monthly interest charge on the balance:
    The balance is the cost of the violin, which is $2,900. To find the interest charge, we multiply the balance by the monthly interest rate:
    \[ \text{Monthly Interest Charge} = \text{Balance} \times \text{Monthly Interest Rate} \]
    \[ = 2900 \times 0.0335 \]
    \[ = 97.15 \]

Thus, the calculation can be summarized as follows:

Sample work and explanation:
The monthly interest charge is calculated based on your balance.
\[ \text{Monthly Interest Rate} = \frac{3.35}{100} = 0.0335 \]
Find the Monthly interest charge:
\[ \text{Monthly Interest Charge} = 2900 \times 0.0335 = 97.15 \]
The monthly interest charge is $97.15.