Calculate interest

The problem

If you know the balance and the annual percentage interest rate, you can compute the interest on the next monthly payment using the following formula: interest = balance * (annualInterestRate / 1200)

Write a program that reads the balance and the annual percentage interest rate and displays the interest for the next month. The program output is illustrated in java below:

Enter balance and interest rate (e.g., 3 for 3%): 1000 3.5 
The interest is 2.91667

Breaking it down

public static void main(String[] Strings) {

    Scanner input = new Scanner(System.in);
    System.out.print("Enter balance and interest rate (e.g., 3 for 3%): ");
    double balance = input.nextDouble();
    double annualInterestRate = input.nextDouble() / 100;

    input.close();

    double interest = calculateInterest(balance, annualInterestRate);

    System.out.print("The interest is " + interest);

}

private static double calculateInterest(double balance,
        double annualInterestRate) {
    double interest = balance * (annualInterestRate / 12);
    return interest;
}

Output

Enter balance and interest rate (e.g., 3 for 3%): 2500 4
The interest is 8.333333333333334