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)

Answer 1

To calculate the interest charged on the credit card balance, you can use the formula:

Interest = Balance * Monthly Interest Rate

In this case, the balance is $400 and the monthly interest rate is 1.75% (or 0.0175 as a decimal).

Interest = $400 * 0.0175
Interest = $7

Therefore, when it is time for you to make your first payment on the $400 balance, you will be charged $7 in interest.