Question

Tonya opens a credit card in which the minimum monthly payment is 10%. Her current balance is $1,950, not including the finance charge, and the APR is 17.5%. Assuming she makes a payment of $300 this month, how much will the minimum monthly payment be for the next month?

Answer 1

subtract 300 from balance....1650
add interest....--> 1650(1+.175/12) = 1674.0625
compute 10% for min monthly payment
--> 1674.0625*0.1 = 167.41