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 calculate how much goes toward the principal with the minimum payment, follow these steps:

1. Calculate the monthly interest:
$958.62 * 9.7% / 12 = $7.67

2. Subtract the monthly interest from the minimum payment:
$105.00 - $7.67 = $97.33

Therefore, $97.33 will go towards the principal with the minimum payment at the end of the first month.