Asked by mom
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, ( You have a credit card that has a balance of $3,589.90 and a credit limit of $5,000), if you have a good credit (5.90 unsecured) 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
Common guideline: acceptable credit-card debt ratio = 30% of your credit limit.
1. Target balance = 30% of $5,000 = 0.30 × 5,000 = $1,500.00
2. Current balance = $3,589.90
3. Required payment = current balance − target balance = $3,589.90 − $1,500.00 = $2,089.90
You must pay $2,089.90 by the end of the month to reach a 30% debt ratio. (If your acceptable ratio is different, tell me the percent and I’ll recalc.)
1. Target balance = 30% of $5,000 = 0.30 × 5,000 = $1,500.00
2. Current balance = $3,589.90
3. Required payment = current balance − target balance = $3,589.90 − $1,500.00 = $2,089.90
You must pay $2,089.90 by the end of the month to reach a 30% debt ratio. (If your acceptable ratio is different, tell me the percent and I’ll recalc.)
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