Question

Morgan has a new credit card with an APR of 14.99% and a credit limit of $1900. The minimum monthly payment is 4% of the new balance. If Morgan purchases $300 in school supplies at the beginning of the month, what will be Morgan's new balance at the end of the month? Express your answer rounded to the nearest cent.

Answer 1

Answer:

To determine Morgan's new balance at the end of the month?

it will be the sum of its, monthly percent amount, expense balance and the fixed monthly payment.

Credit limit = $1900

Annual percent rate = 14.99%

Monthly percentage rate = 14.99/12 =1.249%

which amount to = $300x1.249%/100 = $3.747

Minimum monthly payment = $300x4/100 = $12

Purchase balance = $300

Morgan's new balance at the end of the month = $23.734+ $12+$300

= $315.757        =31575cents