1. **State the problem:** A credit card company charges interest at 2% per month on any outstanding balance. A balance of $1500 is left unpaid. We need to find the balance after 1 month. 2. **Formula used:** The formula for calculating the amount after interest is applied is: $$ A = P(1 + r) $$ where: - $A$ is the amount after interest - $P$ is the principal (initial balance) - $r$ is the interest rate per period (as a decimal) 3. **Apply the values:** $$ P = 1500 $$ $$ r = 2\% = 0.02 $$ 4. **Calculate the new balance:** $$ A = 1500(1 + 0.02) $$ $$ A = 1500(1.02) $$ $$ A = 1530 $$ 5. **Interpretation:** After 1 month, the balance will be $1530, which means the interest added is $30.