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Feliz [49]
3 years ago
7

You owe 958.62 on a credit card at 9.7 percent 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?
Mathematics
1 answer:
weqwewe [10]3 years ago
7 0
APR stands for Annual Percentage Rate and in this problem, we are given APR is equal to 9.7%
Per month rate = 9.7% / 12 months = 0.808%

Total credit interest for 12 months = 958.62 *0.097 = $92.97
In one month = $92.97/12 = $7.7475
If you pay at the end of the first month:
Payment = 105.00
The amount goes to principal:
Amount =$105 - $ 7.7475
Amount = $142.25
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