you owe $848.42 on a credit card at a 12.75% apr the minimum payment of $50 how much goes towards the principial if you make the minimum payment at the end of the first month

Answer 1

To calculate how much of the minimum payment goes towards the principal, we first need to determine the interest accrued for the first month.

Interest accrued = (Current balance * APR) / 12

Interest accrued = ($848.42 * 0.1275) / 12
Interest accrued = $8.56

Now, we subtract the interest accrued from the minimum payment to find out how much goes towards the principal:

Principal payment = Minimum payment - Interest accrued
Principal payment = $50 - $8.56
Principal payment = $41.44

Therefore, if you make the minimum payment of $50 at the end of the first month, $41.44 of it will go towards the principal.