Question

Fran is going to transfer her credit card balance over to a new card. She has an existing balance of $752.69. Her current card charges her a transfer fee of 12.5%, added to her balance, for transferring her debt. The new card has an opening fee of $50, which is also added to her balance. She will also have to make an immediate minimum payment, which is 3.35% of her total balance. How much will her balance be after she makes this payment, assuming that she pays the minimum amount? Round all dollar values to the nearest cent.
a.
$866.74
b.
$868.40
c.
$818.41
d.
$926.82

Answer 1

Start: $752.69
Transfer fee = 12.5% of $752.69 = $94.08625 → $94.09
After fee: 752.69 + 94.09 = $846.78
Add opening fee $50 → $896.78
Minimum payment = 3.35% of $896.78 = $30.04213 → $30.04
Balance after payment = 896.78 − 30.04 = $866.74

Answer: (a) $866.74