Question

Fran is going to transfer her credit card balance over to a new card. She has an existing balance of $752.69. Her current card charges her a transfer fee of 12.5%, added to her balance, for transferring her debt. The new card has an opening fee of $50, which is also added to her balance. She will also have to make an immediate minimum payment, which is 3.35% of her total balance. How much will her balance be after she makes this payment, assuming that she pays the minimum amount? Round all dollar values to the nearest cent.

Answer 1

a

Explanation:

edg 2020

Answer 2

Fran's balance will be $866.73.

Explanation:

She has an existing balance of $752.69

Her current card charges her a transfer fee of 12.5%, added to her balance, for transferring her debt.

This becomes:
`0.125*752.69=94.08`

Total is :
`752.69+94.08=846.77`

The new card has an opening fee of $50, which is also added to her balance.

This becomes now =
`846.77+50=896.77`

She will also have to make an immediate minimum payment, which is 3.35% of her total balance.

This amount is =
`0.0335*896.77=30.04`

Now balance in her account is =
`896.77-30.04=866.73`

So, Fran's balance will be $866.73.