I can't figure out how to do this:
Use the details of Paula's new credit card to answer the question that follows
APR 17.5% compounded monthly
Grace Period 30 days
Minimum Payment 6.5 of the remaining balace or $25, whichever is higher
Paula charged $475 to her credit card last month. What is the first minimum payment she must make?

Question

I can't figure out how to do this:
Use the details of Paula's new credit card to answer the question that follows
APR 17.5% compounded monthly
Grace Period 30 days
Minimum Payment 6.5 of the remaining balace or $25, whichever is higher
Paula charged $475 to her credit card last month. What is the first minimum payment she must make?

amistre64 · Answer

compound the charge and take 6.5 of it and compare it to 25

anonymous · Answer

I got
.175/12=.0145833333
I don't understand what to do next, do I divide it into $475?

amistre64 · Answer

multiply it into 475 to find the amount of interest that is charged to the account

anonymous · Answer

Okay I think I have it figured out now, thank you.

amistre64 · Answer

youre welcome