Erica Tomlinson's credit card company determines her minimum monthly payment by adding all new interest to 1% of the outstanding principal. The credit card company charges an interest rate of 0.03456% per day. On October 15, Erica uses her credit card to purchase a custom set of wheels and tires for her car for $2200. She makes no other purchases or new interest during October. On November 1, instead of making the minimum payment, Erica makes a payment of $500. Assuming there are no additional charges or cash advances, determine Erica's minimum payment due on December 1.

Question

anonymous · Answer

Paying on November 1, she needs to pay 16 days of interest, or
$2200 x 0.0003456 x 16 = $12.17
The balance after she paid $500 is
$2212.17 - $500 = $1712.17
On December 1, she needs to pay 30 days of interest, or
$1712.17 x 0.0003456 x 30 = $17.75
She also needs to pay 1% of her outstanding balance, or $17.12
Her minimum due is
$17.75 + $17.12 = $34.87
Please check my calculation.