Brooklyn opened a store credit card to purchase a sofa for $849. She put the entire purchase on the credit card. Her APR is 19.99% and the minimum payment is 5%. Assuming she makes only minimum payments, what is the remaining balance on her card after 3 months?
849 x (0.1999 / 12) = $14.14 interest
849 + 14.14 = 863.14 balance before payment
863.14 x 0.05 = 43.16 Payment
863.14 - 43.16 = 819.98 balance after payment
2nd month
819.98 x (0.1999 / 12) = $13.66 interest
819.98 + 13.66 = 833.64 balance before payment
833.64 x 0.05 = 41.68 Payment
833.64 - 41.68 = 791.96 balance after payment
3rd month
791.96 x (0.1999 / 12) = $13.19 interest
791.96 + 13.19 = 805.15 balance before payment
805.15 x 0.05 = 40.26 Payment
805.15 - 40.26 = 764.89 balance after payment
My answer is $764.89
1 answer
Not to be rude but this is not correct
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