To calculate the monthly interest charge on the credit card balance for the violin, we will follow the steps outlined in the sample work.
-
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:
\[ \text{Monthly Interest Rate} = \frac{3.35}{100} = 0.0335 \] -
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.