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 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.