Question

Use the details of Osborn's new credit card to answer the question that follows.

APR 14.4% compounded monthly
Grace Period 28 days
Minimum Payment 6% of the remaining balance or $35, whichever is higher

Osborn charged $530 to his credit card last month. What is the first minimum payment he must make? (2 points)

$76.32
$35.00
$31.80
$53.00

Answer 1

My answer is 31.80. hope this helps.

Answer 2

530(1+.144/12)(.06) = 32.18 so even that is less than 35
So the answer is 31.80