Question

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.
A. $28
B. $35
C. $18
D $45

Answer 1

after paying the $500, her new balance is $1700 which accrues interest for the next 30 days until December 1.
New interest = 1700(1+i)^30 - 1700
where i is the daily interest rate
add that to 1% of 1700 --> .01*1700 = 17

Answer 2

so would the answer be $35

Answer 3

yes