Joseph Simpson, a student at State College, has an average balance of $250 on his retail charge card; if the store levies a finance charge of 22 percent per year, how much monthly interest will be added to his account? Assume that the balance is computed by the average daily balance method. Round the answer to 2 decimal places. $
Joseph Simpson, a student at State College, has an average balance of $250 on his retail charge card; if the store levies a finance charge of 22 percent per year, how much monthly interest will be added to his account? Assume that the balance is computed by the average daily balance method. Round the answer to 2 decimal places.
$
Monthly interest refers to the amount of money charged or earned on a financial account, such as a loan or savings account, over the course of one month. It is typically expressed as a percentage of the account balance and is calculated on a monthly basis.
For loans or credit cards, monthly interest represents the cost of borrowing money, and it accumulates on any outstanding balance that has not been paid off.
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