NEED SERIOUS HELP !

APR 12.5% compounded monthly
Grace Period 28 days
Minimum Payment 7% of the remaining balance or $30, whichever is higher
Otto charged $445 to his credit card last month. What is the first minimum payment he must make?
$55.63

$44.50

$30.00

$31.15

Question

NEED SERIOUS HELP !


APR	12.5% compounded monthly
Grace Period	28 days
Minimum Payment	7% of the remaining balance or $30, whichever is higher
Otto charged $445 to his credit card last month. What is the first minimum payment he must make?
 $55.63

 $44.50

 $30.00

 $31.15

anonymous · Answer

Just walk me threw it ?

phi · Answer

I am not sure if he gets charged interest on the "grace period"  or not.  If not,  he owes 0.07*445

if he owes one months interest he owes  445  +  0.125/12 * 445
the min payment would be  0.07 times that amount