Find the monthly interest payment in the situation described below. Assume that the monthly interest rate is \( 1 / 12 \) of the annual interest rate. You maintain an average balance of \( \$ 900 \) on your credit card, which carries an \( 18 \% \) annual interest rate. The monthly interest payment is \( \$ \square \) (Type an integer or a decimal.)

To find the monthly interest payment, we can start by calculating the monthly interest rate, which is \( \frac{18\%}{12} = 1.5\% \) or \( 0.015 \) in decimal form. Next, we multiply the average balance of \( \$ 900 \) by the monthly interest rate: \[ \text{Monthly Interest Payment} = 900 \times 0.015 = 13.5 \] Therefore, the monthly interest payment is \( \$ 13.50 \). Now, let’s put this in context! Did you know that credit card interest rates can vary significantly based on your credit score? Maintaining a solid credit history can help you qualify for lower rates, saving you money in interest payments over time. Additionally, if you'd like to minimize those interest payments in the future, consider paying down your balance sooner. Making payments more frequently or even just above the minimum can significantly reduce the interest accrued. Just a little budgeting savvy goes a long way!