When Beth finishes college, she has a balance of $2876.37 on a credit card with an annual percentage rate (APR) of 17.3%. She decides not to 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 monthly payment.
Her minimum monthly payment starts out at 2% of the balance due, or %57.53. It gradually decreases after that. After 30 days, her next balance due will be
2876.37 - 57.53 + 41.47 (interest) = 2860.31, and the minimum payment will be $57.21
To find Beth's minimum monthly payment, we need to calculate 2% of her credit card balance.
Step 1: Calculate 2% of the balance.
Minimum Monthly Payment = 2% of $2876.37
To find 2% of a value, multiply the value by 0.02.
Step 2: Multiply the balance by 0.02.
Minimum Monthly Payment = $2876.37 * 0.02
Step 3: Calculate the result.
Minimum Monthly Payment = $57.53
Therefore, Beth's minimum monthly payment is $57.53.