Use the details of Osborn’s new credit card to answer the question that follows.

APR 14.4% compounded monthly
Grace Period 28 days
Minimum Payment 6% of the remaining balance or $35, whichever is higher

Osborn charged $530 to his credit card last month. What is the first minimum payment he must make?
$76.32

$31.80

$35.00

$53.00

Question

Use the details of Osborn’s new credit card to answer the question that follows. 


APR	14.4% compounded monthly
Grace Period	28 days
Minimum Payment	6% of the remaining balance or $35, whichever is higher


Osborn charged $530 to his credit card last month. What is the first minimum payment he must make?
 $76.32

 $31.80

 $35.00

 $53.00

amistre64 · Answer

which is greater,  6% of $530, or $35

anonymous · Answer

$35

amistre64 · Answer

then 35 it is

anonymous · Answer

The first time i answered it as 35 and it was wrong

amistre64 · Answer

even if you try to compound it .... its still less than 35

amistre64 · Answer

530(1+.144/12)(.06) = 32.18  so even that is less than 35

anonymous · Answer

Okay, so the answer is $31.80?

amistre64 · Answer

6% of the remaining balance or $35, whichever is higher
                                                                        ^^^^^

amistre64 · Answer

it would have to sit in there 9 months before it got to 35.40 .....