Question

Fran is going to transfer her credit card balance over to a new card. She has an existing balance of $752.69. Her current card charges her a transfer fee of 12.5%, added to her balance, for transferring her debt. The new card has an opening fee of $50, which is also added to her balance. She will also have to make an immediate minimum payment, which is 3.35% of her total balance. How much will her balance be after she makes this payment, assuming that she pays the minimum amount? Round all dollar values to the nearest cent.

Answer 1

Answer:

Fran's balance will be $866.73.

Step-by-step explanation:

She has an existing balance of $752.69

Her current card charges her a transfer fee of 12.5%, added to her balance, for transferring her debt.

This becomes: $0.125\times752.69=94.08$

Total is : $752.69+94.08=846.77$

The new card has an opening fee of $50, which is also added to her balance.

This becomes now = $846.77+50=896.77$

She will also have to make an immediate minimum payment, which is 3.35% of her total balance.

This amount is = $0.0335\times896.77=30.04$

Now balance in her account is = $896.77-30.04=866.73$

So, Fran's balance will be $866.73.