# 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

My answer is $32.38

## 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.

So, your answer of $32.38 is correct.

## 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.

So, your answer of $32.38 is correct.

## 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.