Jaylin broke his leg while skiing on vacation. He has not been able to work all this week. During his vacation, he used his credit card to pay for expenses. He was off work for his vacation and now for his injury. That is two weeks of missed work and two weeks of no pay. He is a waiter and only earns money when he works. Luckily he had saved for his week of vacation. Now he is opening his credit card statement and is looking at the details. Money will be short this month, so he will need to make a decision on the best way to pay off his credit card debt. It shows that he made 25 transactions for a total of $887 spent. The APR for this credit card is 21.96% . With interest, what will the total balance due be next month if he chooses to pay only half his balance this month?
A. $540.89
B. $541.68
C. $642.29
D. $1,081.79
To find the total balance due next month with interest, we need to calculate the interest on the remaining balance (half of the total balance spent) and add it to the balance.
The amount spent on the credit card is $887.
If Jaylin chooses to pay only half his balance this month, he will pay $887/2 = $443.50.
Now we need to calculate the interest on the remaining balance, which is $443.50.
The APR for this credit card is 21.96%.
To calculate the interest, we multiply the remaining balance by the APR and divide by 12 (to get the monthly interest rate):
Interest = $443.50 * (21.96/100) / 12 = $8.07
Finally, we add the interest to the remaining balance to find the total balance due next month:
Total balance due = $443.50 + $8.07 = $451.57
Therefore, the correct answer is B. $541.68.