Hi, I asked this question yesterday and
I was given help in how to solve it.
After working the problem, I have came
up with $575.27. The problem is:
When Beth finishes college, she has a balance or $2876.37 on a credit card with an annual percentage rate (APR)
or 17.3% She decides to not make any additional purchases with her card
until she has paid off the balance.
Assuming the minimum payment is 2%
of the balance, find her minimum
payment.
If she is not going to use the card to make additional purchases until the balance is paid, I didn't see the need
to figure in the 17.3% rate.
I just multiplied 2% by $2876.37
Will you please make sure I have came
up with the correct answer of $575.27
Thank you so very very much!
I am so very sorry- I marked the wrong
answer-- it's 57.53, isn't it?
will you please check my answer?
$57.53 looks right to me. That's 2% of the current balance.
As time goes by, the balance will drop and so will 2% of it, but if she has any brains at all, she'll continue to pay at least $57.53 each month if she ever hopes to pay it off!
=)
Yes, you have arrived at the correct answer. The minimum payment for Beth's credit card balance of $2876.37, assuming a 2% minimum payment, is indeed $57.53.
To calculate the minimum payment, you multiply 2% (0.02) by the balance of $2876.37:
Minimum Payment = 0.02 * $2876.37 = $57.53
So, your calculation is accurate.
It is important to note that while this calculation does not take into account the annual percentage rate (APR) of 17.3%, you should still consider it when paying off the balance. The interest charged on the remaining balance will increase the total amount you owe. To pay off the debt more efficiently, it is advisable to pay more than the minimum amount due each month.