r = (20.85%/12)/100% = 0.017375 = Monthly % rate expressed as a decimal.
a. $739.65(1-0.05) = $702.67.
BAL = 702.67(1+0.017375)+179.39 =
$894.27.
b. 0.05*894.27 = $44.71
b
al =
a)If she makes no other purchases or payments. What will her balance be on her next statement dated april 12?
b)On her april statement, what will her minimum payment be?
a. $739.65(1-0.05) = $702.67.
BAL = 702.67(1+0.017375)+179.39 =
$894.27.
b. 0.05*894.27 = $44.71
b
al =
a) Let's start by calculating the interest on the unpaid balance. The annual interest rate is 20.85%, so we need to convert it to a monthly rate. Divide 20.85% by 12 to get 1.7375% as the monthly interest rate.
To calculate the interest, multiply the unpaid balance ($739.65) by the monthly interest rate (1.7375% or 0.017375 in decimal form):
Interest = $739.65 * 0.017375 = $12.85
Adding the interest to the balance:
Balance with interest = $739.65 + $12.85 = $752.50
Next, we need to add the new purchase ($179.39) to the balance with interest:
Balance on next statement = $752.50 + $179.39 = $931.89
Therefore, Monique's balance on her next statement dated April 12 will be $931.89.
b) The minimum payment is 5% of the balance or $10, whichever is greater. Let's calculate both options and take the greater amount.
5% of the balance:
Minimum payment = $931.89 * 5% = $46.59
$10 or the greater amount:
Minimum payment = max($10, $46.59) = $46.59
Therefore, Monique's minimum payment on her April statement will be $46.59.