Question

The minimum monthly payment for Alicia's credit card is 2% of her balance or $10, whichever is higher. If Alicia's balance at the end of her last billing cycle was $470, what is her minimum monthly payment?

Answer 1

Alicia's minimum monthly payment is $10.

Explanation:

Given is :

Alicia's balance at the end of her last billing cycle was $470. So, its 2 % becomes:

`(2)/(100) *470` = $9.40

As it is stated that the minimum monthly payment for Alicia's credit card is 2% of her balance or $10, whichever is higher.

Therefore, $10 is higher amount than $9.40

So, the correct answer is: Alicia's minimum monthly payment is $10.