Solve the problem. 10) Briana\'s credit card company determines her minimum mont

Question

Solve the problem. 10) Briana's credit card company determines her minimum monthly payment by adding all new interest to 5% of the outstanding principal. The credit card company charges an interest rate of 1.65% per month. On June 11th, Briana used her credit card to pay car tuition for $1200. She makes no other purchases during June. a. Assuming Briana had no previous balance, determine her mini payment due on July 1st, her billing date. (3 points) b. Instead of making her minimum payment, Brianna pays $350 on July 1st. If he makes no other charges, find the balance due on August 1st? (3 points)

Explanation / Answer

Ans 10

Part a

Minimum balance on July 1st = outstanding balance x 5% of outstanding principal

= $1200 x 5/100

= $60

Part b

Brianna paid = $350

Payment due = $1200 - $350 = $850

Balance due on August 1st = $850 + $850*1.65/100

= $864.025

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