A credit card company charges 1.5% interest per month (that is 18% per year). On a balance of $1448.00, calculate this month's finance charge
1448 * 0.015 = ?
To calculate this month's finance charge, you need to multiply the balance by the monthly interest rate.
First, convert the annual interest rate of 18% to the monthly interest rate. Since there are 12 months in a year, divide the annual interest rate by 12:
Monthly interest rate = Annual interest rate / 12
Monthly interest rate = 18% / 12
Monthly interest rate = 0.18 / 12
Monthly interest rate = 0.015
Now that you have the monthly interest rate (0.015), you can calculate the finance charge by multiplying it by the balance:
Finance charge = Monthly interest rate * Balance
Finance charge = 0.015 * $1448.00
Finance charge = $21.72
Therefore, this month's finance charge for a balance of $1448.00 is $21.72.