You have a balance of $400 on a credit card with a monthly interest rate of 1.75%. How much interest will be charged when it is time for you to make your first payment on that balance?(1 point)
To calculate the interest charged on the credit card balance, you can use the formula:
Interest = Balance * Monthly Interest Rate
In this case, the balance is $400 and the monthly interest rate is 1.75% (or 0.0175 as a decimal).
Interest = $400 * 0.0175
Interest = $7
Therefore, when it is time for you to make your first payment on the $400 balance, you will be charged $7 in interest.