Question

The minimum monthly payment for Leland's credit card is 2.5% of his balance or $30, which ever is higher. if Leland's balance at the end of his last billing cycle was $950, what is his minimum monthly payment?

A. $53.75
B. $30.00
C. $6.25
D.$23.75

Answer 1

Option B. $30.00

Explanation:

The minimum monthly payment for Leland's credit card is 2.5% of his balance or $30, whichever is higher.

Leland's balance at the end of his last billing cycle was = $950

Now first we will calculate 2.5% of $950

=
`(25)/(100)` × 950

= 0.25 × 950 = $23.75 < $30

$30 is higher than 2.5% of his last billing, So his minimum monthly payment would be $30.