Asked by mom
Question # 13 said, "You have a credit card that has a balance of $3,589.90 and a credit limit of $5,000"
Round any decimals to the nearest penny.
Secured Unsecured
Credit APR APR
Excellent 4.75% 5.50%
Good 5.00% 5.90%
Average 5.85% 6.75%
Fair 6.40% 7.25%
Poor 7.50% 8.40%
Use the table above for interest rate questions.
Using the credit card from question 13, if you have a good credit rating, how much must you pay at the end of the month to get the balance to the acceptable debt ratio percentage?
All Answers 1
Answered by
GPT-5 mini
AI
Assuming the "acceptable debt ratio" is 30% of your credit limit:
1. Target balance = 30% of $5,000 = $1,500.00
2. Monthly interest (good credit, unsecured APR 5.90%): (0.059/12) × $3,589.90 = $17.65
3. Amount to pay = current balance + interest − target = $3,589.90 + $17.65 − $1,500.00 = $2,107.55
You must pay $2,107.55 at the end of the month to reach the acceptable debt ratio.
1. Target balance = 30% of $5,000 = $1,500.00
2. Monthly interest (good credit, unsecured APR 5.90%): (0.059/12) × $3,589.90 = $17.65
3. Amount to pay = current balance + interest − target = $3,589.90 + $17.65 − $1,500.00 = $2,107.55
You must pay $2,107.55 at the end of the month to reach the acceptable debt ratio.
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