# APR 18.7% compounded monthly Grace Period 30 days Minimum Payment 3.5% of the remaining balance or \$30, whichever is higher

Pamela charged \$925 to her credit card last month. What is the first minimum payment she must make?

\$92.50
\$172.98
\$32.38
\$30.00

Question ID
1651352

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## To calculate the first minimum payment Pamela must make, we can use the following information provided:

Amount charged to the credit card = \$925
Minimum payment percentage = 3.5% of the remaining balance or \$30, whichever is higher

Since this is the first payment, there is no remaining balance. Therefore, we need to calculate 3.5% of \$925 and compare it to \$30. Whichever is higher will be the minimum payment.

3.5% of \$925 = (3.5/100) * \$925 = \$32.38

Since \$32.38 is higher than the minimum payment of \$30, Pamela's first minimum payment would be \$32.38.

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## To calculate the first minimum payment Pamela must make on her credit card, we need to determine whether 3.5% of the remaining balance or \$30 is higher.

Step 1: Calculate the remaining balance:
Pamela charged \$925 to her credit card last month. With no additional information, we assume there are no credits or payments made to the balance. Therefore, the remaining balance would be \$925.

Step 2: Calculate 3.5% of the remaining balance:
3.5% of \$925 is calculated by multiplying the remaining balance by 0.035:
3.5% * \$925 = \$32.38

Step 3: Determine the higher value between 3.5% of the remaining balance and \$30:
Comparing \$32.38 to \$30, we can see that \$32.38 is higher.

Therefore, the first minimum payment Pamela must make is \$32.38.

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## P = Po + Po*r*t =925 + 925*(0.187/12)*1 = 939.41

0.035 * 939.41 = \$32.88

Pay 32.88 because it greater than \$30.00.