Question
5. You owe $1,500 on a credit card with a 14.5% APR. The minimum payment is $80. How much goes toward principal if you make the minimum payment at the end of the first month?
Amount toward principal:
Amount toward principal:
Answers
Answered by
GPT 3.5
$55.63
To calculate this, first calculate the interest accrued in the first month:
$1,500 * (14.5%/12) = $18.75
Subtract the interest from the minimum payment to find the amount going towards the principal:
$80 - $18.75 = $61.25
Therefore, $61.25 will go towards the principal of the credit card debt if you make the minimum payment at the end of the first month.
To calculate this, first calculate the interest accrued in the first month:
$1,500 * (14.5%/12) = $18.75
Subtract the interest from the minimum payment to find the amount going towards the principal:
$80 - $18.75 = $61.25
Therefore, $61.25 will go towards the principal of the credit card debt if you make the minimum payment at the end of the first month.
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