Moniques credit card charges interest of 20.85% per annum on unpaid balances on her march 12 statement. she had a balance of $739.65 due by the due date, she made the minimum payment (5% or 10.00, Whichever is greater.) On march 16. She made a purchase of $179.39

a)If she makes no other purchases or payments. What will her balance be on her next statement dated april 12?

b)On her april statement, what will her minimum payment be?

1 answer

r = (20.85%/12)/100% = 0.017375 = Monthly % rate expressed as a decimal.

a. $739.65(1-0.05) = $702.67.
BAL = 702.67(1+0.017375)+179.39 =
$894.27.

b. 0.05*894.27 = $44.71

b

al =