Original debt = $589
APR = 29.99%
The monthly rate is 0.2999/12 = 0.02499
After 1 month:
Amount owed = 589*1.02499 = $603.72
5% payment = 0.05*603.72 = $30.187
New balance = $603.72 - 30.187 = $573.53
After 2 months:
Amount owed = 573.53*1.02499 = $587.87
5% payment = 0.05*587.87 = $29.39
New balance = 587.87 - 29.39 = $558.48
After 3 months:
Amount owed = 558.48*1.02499 = $572.44
5% payment = 0.05*572.44 = $28.62
New balance = 572.43 - 28.62 = $543.82
Answer: $543.82
51300 ÷ 44800 = 1.120087336 = 1.12%
