Question

Your parents have $2745.69 on credit card with a 12.75% apr. They miss their minimum payment and there is a late fee of $29.00. How much is their balance at the beginning of they second month

Answer 1

Answer: Their balance at the beginning of their second month is $2803.86.

Step-by-step explanation:

Since we have given that

Amount on credit card = $2745.69

APR on credit card = 12.75%

Late fee = $29

According to question, they miss their minimum payment .

So, their balance at the beginning of their second month is given by

$2745.69\times \frac{12.75}{12\times 100}\\\\=29.17\\\\\text{After late fees }=29.17+29\\\\=58.17\\\\\text{ Amount in the beginning of their second month }\\\\=\ 2745.69+58.17\\\\=2803.86$

Hence, their balance at the beginning of their second month is $2803.86