Given:
The monthly interest rate is 1/12 of the annual interest rate.
An average balance of $600 on a credit card, carries a 15% annual interest rate.
To find:
The monthly interest payment.
Explanation:
Since the monthly interest rate is 1/12 of the 15% annual interest rate.
So, the monthly interest rate is,
[tex]\frac{1}{12}\times15\%=1.25\%[/tex]So, the monthly interest payment for the average balance of $600 is
[tex]600\times\frac{1.25}{100}=\text{ \$}7.5[/tex]Therefore, the monthly interest payment is $7.5.
Final answer:
The monthly interest payment is $7.5.
