Chris opened up a new Visa credit card and credit line with U.S. Bank. He is a paying a 15% annual percentage rate (APR) on all new purchases.
a. If he has a current balance of $2,800 on this credit card, how much does he owe in interest to the bank next month? (Section 8.3) (2 points)
b. If he sends in a payment to U.S. Bank for $140, how much of that will go toward paying off his principal balance? (Section 8.3) (1 point) 7.
It is recommended that your monthly credit card payments never amount to more than 20% of your net take-home income. If Chris earns $3,600 per month, what is the most he should make in credit card payments per month to the bank? (Section 7.7) (1 point)
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