Laurie's new student credit card has a 0% introductory APR for six months. The minimum payment per month for the card is $20. After the introductory period the APR is 15%. Laurie buys a few presents using her credit card so that her total balance is $135. If Laurie decides to make just the minimum payment, what would her balance be when the introductory period ends?

Question

valarie6 · Answer

A)15
B)35
C)25.12
D)21.63

SmokeyBrown · Answer

Howdy and welcome to QuestionCove!
So, if I understand correctly, Laurie pays $20 per month for 6 months. That's $120 total, right? From her balance of $135, how much does she have left to pay once she's paid off $120?
Since she has no interest for the first 6 months, the calculations are pretty simple.