Question

You owe $3,000 on your credit card with a 24% APR. What would be the minimum payment amount if your credit card company requires at least 5% each month?
Be sure to show your work below.

Answer 1

Interest charge = balance x ( apr/12)

3000 x (.24/12) = 60

Balance = 3000 + 60 = 3060

Minimum payment is total balance x percent for payment:

3060 x 5% = 153

The minimum payment is $153