Question

Tony’s credit card statement says that he must pay a minimum payment of 15% or $20 whichever is greater. How much will he pay if his new balance is $138.90

Answer 1

The answer is $188.90. If I am wrong, please correct me.

Answer 2

Answer: $20.84

Step-by-step explanation: In order to calculate Tony’s minimum payment you need to calculate how much 15% is of his balance.

138.90 x .15 = $20.84, which is 15% of his balance.

The minimum payment is the greater of 15% or $20, so his minimum payment will be $20.84.