Find the monthly interest payment in the situation described below. Assume that the monthly interest rate is 1 divided by 12 of the annual interest rate.
You maintain an average balance of ​$825 on your credit​ card, which carries a 12​% annual interest rate.
What is the monthly interest payment? ​(Type an integer or a​ decimal.)

To find the monthly interest payment on the credit card, we can follow these steps:

### Given:
- Average balance on the credit card: $825
- Annual interest rate: 12%
- Monthly interest rate: $\frac{1}{12}$ of the annual interest rate

### Step 1: Calculate the monthly interest rate.
\[
\text{Monthly interest rate} = \frac{12\%}{12} = 1\%
\]

### Step 2: Convert the percentage to a decimal.
\[
1\% = 0.01
\]

### Step 3: Calculate the monthly interest payment.
\[
\text{Monthly interest payment} = 825 \times 0.01 = 8.25
\]

So, the monthly interest payment is **$8.25**.

Would you like further details or have any other questions?

Here are five related questions to deepen your understanding:
1. How does changing the annual interest rate affect the monthly interest payment?
2. What would the monthly interest payment be if the balance was $1,000 instead of $825?
3. How can you reduce the monthly interest payment on a credit card?
4. What is the total interest paid over a year for this balance and interest rate?
5. How would a higher or lower balance impact your total annual interest?

**Tip:** Paying more than the minimum monthly payment can reduce the interest charged over time, saving you money!

Find the monthly interest payment in the situation described below. Assume that the monthly interest rate is 1 divided by 12 of the annual interest rate. You maintain an average balance of ​$825 on your credit​ card, which carries a 12​% annual interest rate. What is the monthly interest payment? ​(Type an integer or a​ decimal.)

Learn how to calculate the monthly interest payment on a credit card balance of $825 with a 12% annual interest rate. This problem involves calculating the monthly interest rate and applying simple interest formulas. Suitable for students in Grades 6-8.

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