Question

The minimum monthly payment for Jesse's credit card is 3.5% of his balance or $25, whichever is higher. If Jesse's balance at the end of his last billing cycle was $825, what is his minimum monthly payment?

(Personal Finance Paper Test Apex)

Answer 1

The minimum monthly payment is $ 28.875

Explanation:

Given as :

Jesse's balance at the end of his last billing = $ 825

Let The minimum monthly payment = $ x

The minimum monthly payment of credit card is 3.5% of balance or $25 whichever is higher

So, calculate the monthly payment with given percentage and then compare

∴ The minimum monthly payment = 3.5% of balance

Or, x = 3.5% of $825

Or, x = 0.035 × 825 = $28.875

So , The calculate minimum monthly payment is $28.875 which is higher than given minimum monthly payment i.e $ 25

Hence The minimum monthly payment is $ 28.875 Answer