Question

Terri opens a credit card in which the minimum monthly payment is 8% her current balanbe is $2950 not including the finance charge and the apr is 23.5% assuming she makes a payment of $600 this month how much will the minimum monthly payment be for the next month

Answer 1

A $600.00 payment will leave a balance of $2350.00 to be carried over to next month. At 23.5% APR, the interest on the new balance would be $46.02. (I arrived at this by the following: $2350.00 x 23.5%, which is a total annual interest charge of $552.25. Divided by 12, this equals $46.02.)
balance $2350.00
interest 46.02
total $2396.02 x 8% = a payment of $191.68