Question

Use the details of Oakley's new credit card to answer the question that follows. APR 11.9% compounded monthly Grace Period 28 days Minimum Payment 4% of the remaining balance or $25, whichever is higher Oakley charged $795 to his credit card last month. What is the first minimum payment he must make? (2 points) $25.00 $31.80 $79.50

Answer 1

the correct answer is $31.80

Answer 2

4% of the balance of $795 is $31.80. This amount is higher than $25, so is the amount of the minimum payment.

The appropriate choice is ...

.... $31.80