Question

*Advance Algebra With Financial App **
[Work Is Shown]
Bridgette opened a store credit card to purchase a business suit for $463. She put the entire purchase on the credit card. Her APR is 14.99% and the minimum payment is 5%. Assuming she makes only minimum payments, what is the remaining balance on her card after 3 months?
--------
463+14.99%+5%=463.1999
463.1999+14.99%+5%=463.3998

What am I doing wrong ? Can someone help me .

Answer 1

$396.97

$412.83

$397.35

$445.63

Answer 2

$397.35

Answer 3

How you get that ?

Answer 4

just talk the equation out it will make sense

Answer 5

and math comes real easy to me so it's hard to explain

Answer 6

This is something you'll have to step through and simulate


Month 1

Monthly Payment = 5% of 463 = 0.05*463 = 23.15

Monthly Payment = $23.15

463*(1+0.1499/12) = 468.783641666667 = 468.78

Old Balance (Before adding on interest): 463
New Balance (After adding on interest): 468.78

Make Monthly Payment: 468.78 - 23.15 = 445.63



----------------------------------------------------------------------------------------

Month 2

Monthly Payment = 5% of 445.63 = 0.05*445.63 = 22.28

Monthly Payment = $22.28

445.63*(1+0.1499/12) = 451.196661416667 = 451.2

Old Balance (Before adding on interest): 445.63
New Balance (After adding on interest): 451.2

Make Monthly Payment: 451.2 - 22.28 = 428.92



----------------------------------------------------------------------------------------

Month 3

Monthly Payment = 5% of 428.92 = 0.05*428.92 = 21.45

Monthly Payment = $21.45

428.92*(1+0.1499/12) = 434.277925666667 = 434.28

Old Balance (Before adding on interest): 428.92
New Balance (After adding on interest): 434.28

Make Monthly Payment: 434.28 - 21.45 = 412.83


Remaining balance after month 3 is $412.83