Chantal has an outstanding balance of $254.85 on a credit card. The minimum monthly payment is 13% or $25.00, whichever is more. What is the minimum monthly payment?

Question

a. $33.13

c. $25.00

b. $38.13

d. $21.00

Answer 1

The minimum monthly payment is 13% of the outstanding balance or $25.00, whichever is more.

0.13 * 254.85 = $33.13

Therefore, the minimum monthly payment is $33.13, which is greater than $25.00.

So, the answer is a. $33.13