What is the monthly interest payment for an account with a balance of $100.00 and an A.P.R. of 18%? A. $18.00 C. $8.33 B. $5.56 D. $1.50
What is the monthly interest payment for an account with a balance of $100.00 and an A.P.R. of 18%? A. $18.00 C. $8.33 B. $5.56 D. $1.50
Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
Problem 1RQ
Related questions
Question
![### Monthly Interest Payment Calculation
#### Problem Statement:
"What is the monthly interest payment for an account with a balance of $100.00 and an A.P.R. of 18%?"
#### Answer Choices:
- A: $18.00
- B: $5.56
- C: $8.33
- D: $1.50
#### Explanation:
To calculate the monthly interest payment, follow these steps:
1. **Annual Percentage Rate (A.P.R.)** is given as 18%.
2. Convert the A.P.R. to a monthly interest rate by dividing by 12 (since there are 12 months in a year):
\[
\text{Monthly Interest Rate} = \frac{\text{A.P.R.}}{12} = \frac{18\%}{12} = 1.5\%
\]
3. Apply the monthly interest rate to the account balance ($100.00):
\[
\text{Monthly Interest Payment} = \text{Account Balance} \times \text{Monthly Interest Rate}
\]
\[
\text{Monthly Interest Payment} = 100.00 \times 0.015 = \$1.50
\]
Therefore, the correct answer is:
- D: $1.50
(Note: There is no graphical representation or diagram associated with this problem in the provided image.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0baf8d84-7bca-42e4-b311-c194d17a7b68%2Faccd2f2e-19c0-4174-9074-ec6fb13fe1cb%2F1x2oza_processed.jpeg&w=3840&q=75)
Transcribed Image Text:### Monthly Interest Payment Calculation
#### Problem Statement:
"What is the monthly interest payment for an account with a balance of $100.00 and an A.P.R. of 18%?"
#### Answer Choices:
- A: $18.00
- B: $5.56
- C: $8.33
- D: $1.50
#### Explanation:
To calculate the monthly interest payment, follow these steps:
1. **Annual Percentage Rate (A.P.R.)** is given as 18%.
2. Convert the A.P.R. to a monthly interest rate by dividing by 12 (since there are 12 months in a year):
\[
\text{Monthly Interest Rate} = \frac{\text{A.P.R.}}{12} = \frac{18\%}{12} = 1.5\%
\]
3. Apply the monthly interest rate to the account balance ($100.00):
\[
\text{Monthly Interest Payment} = \text{Account Balance} \times \text{Monthly Interest Rate}
\]
\[
\text{Monthly Interest Payment} = 100.00 \times 0.015 = \$1.50
\]
Therefore, the correct answer is:
- D: $1.50
(Note: There is no graphical representation or diagram associated with this problem in the provided image.)
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