Alexandra owes $875.45 on her charge account. The minimum payment due is $25.00. Alexandra’s monthly interest charge is 2.4% of the unpaid balance. How much will she owe next month if she makes no new purchases?

Question

Alexandra owes $875.45 on her charge account.  The minimum payment due is $25.00.  Alexandra’s monthly interest charge is 2.4% of the unpaid balance.  How much will she owe next month if she makes no new purchases?

cicilybailey14 · Answer

@imqwerty  help? :)

linseylou88 · Answer

Since it doesn't say she had made any payments on it, i guess its the same balance? So you would have 2.4% interest on $875.45.
your equation would be 875.45 x .024= 21.01
21.01 is how much is going to be added to the debt, leaving Alexandra with $896.46 to pay back. 
if you are wondering how i got the equation, it  is because you must times the total amount of money by the interest. to times it by the interest you must first convert the "%" into a decimal form to times anything. if the "%" is a two digit number like: 20% it would equal .2, if it was a one digit number like: 1% it would equal .01. And any decimals following the "%" would just follow behind the number, like: 3.8%= .038

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