Schwartzman Co.makes a credit card sale to a customer for $800.The credit card sale has a grace period of 30 days and then an interest charge of 1.5% per month is added to the balance.If the unpaid balance on the above sale is $640 at the end of the grace period, the interest charge is

Question

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The interest charge is calculated based on the unpaid balance of $640 and the interest rate of 1.5% per month.

To find the interest charge, we can use the following formula:

Interest = (Unpaid balance) x (Interest rate)

Plugging in the values, we get:

Interest = $640 x 0.015 = $9.60

Therefore, the interest charge is $9.60.