Question

Interest Payments for Credit Cards Refer to Problem 55. The card holder may pay any amount between the minimum due and the total owed. The organization issuing the card charges the card holder interest of 1.5% per month for the first $1000 owed and 1% per month on any unpaid balance over $1000. Find the function g that gives the amount of interest charged per month on a balance of x dollars. Graph g

Answer 1

For a bill of less than $10, the entire amount is due. For a bill of at least $10 but less than $500, the minimum due is $10. A minimum of $30 is due on a bill of at least $500 but less than $1000, a minimum of $50 is due on a bill of at least $1000 but less than $1500, and a minimum of $70 is due on bills of $1500 or more.