you owe $848.42 on a credit card at a 12.75% apr the minimum payment of $50 how much goes towards the principial if you make the minimum payment at the end of the first month
To calculate how much of the minimum payment goes towards the principal, we first need to determine the interest accrued for the first month.
Interest accrued = (Current balance * APR) / 12
Interest accrued = ($848.42 * 0.1275) / 12
Interest accrued = $8.56
Now, we subtract the interest accrued from the minimum payment to find out how much goes towards the principal:
Principal payment = Minimum payment - Interest accrued
Principal payment = $50 - $8.56
Principal payment = $41.44
Therefore, if you make the minimum payment of $50 at the end of the first month, $41.44 of it will go towards the principal.