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
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.