You owe $958.62 on a credit card at a 9.7% APR. the minimum payment is $105.00 how much goes toward principal if you make the minimum payment at the end of the first month

Answer 1

To find out how much goes towards the principal, we first need to calculate how much interest is charged for the first month:

First, calculate the monthly interest rate by dividing the annual interest rate by 12:

9.7% / 12 = 0.00808 (rounded to five decimal places)

Next, multiply the monthly interest rate by the balance:

0.00808 x $958.62 = $7.76 (rounded to two decimal places)

So, the interest charged for the first month is $7.76.

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

$105.00 - $7.76 = $97.24

Therefore, $97.24 goes towards the principal if you make the minimum payment at the end of the first month.