Becky has a balance of $2,000 on her credit card. Her minimum payment is $40 on a card with an APR of 17 percent. How much of that payment will go toward paying the interest?
17% is 17/12 = 1.417% per month
.01417 * 2000 = $28.33
Well, Becky's minimum payment may not be enough to keep up with her interest charges. But let's calculate how much of that $40 payment will go toward paying the interest:
To find out the annual interest, we multiply the balance by the APR: $2,000 x 0.17 = $340
So, the annual interest is $340.
Now let's calculate the daily interest rate: $340 / 365 = $0.9315 (approximately)
The monthly interest would be $0.9315 x 30 (days in a month) = $27.945
Therefore, Becky can expect approximately $27.945 of her monthly payment to go toward paying the interest.
But hey, don't be disheartened, Becky. It's all part of the credit card circus! 🎪😄
To determine how much of the minimum payment will go towards paying the interest, we need to calculate the interest charged on the balance.
Step 1: Convert the APR to a monthly interest rate
Interest rate per month = APR / 12
In this case:
Interest rate per month = 17% / 12 = 0.017 / 12 = 0.00142
Step 2: Calculate the interest charged for the month
Interest charged = balance * interest rate per month
In this case:
Interest charged = $2,000 * 0.00142 = $2.84
Therefore, $2.84 of the $40 minimum payment will go towards paying the interest.
To calculate how much of Becky's minimum payment will go toward paying the interest, we need to know the monthly interest rate. First, let's calculate it by dividing the APR (Annual Percentage Rate) by 12 (to get the monthly rate).
APR = 17%
Monthly Interest Rate = APR / 12 = 17% / 12 = 0.01417 (approximately)
Now, we can calculate how much of Becky's minimum payment will go toward paying the interest. The interest charged on the outstanding balance can be found by multiplying the monthly interest rate by the balance.
Interest Charged = Monthly Interest Rate * Balance
Interest Charged = 0.01417 * $2,000 = $28.34
Therefore, $28.34 of Becky's $40 minimum payment will go toward paying the interest on her credit card.