Question

You have $1,998.00 on a credit card with a 14.5% APR. You miss your minimum payment the first month and there is a late fee of $37.00. How much is your balance at the beginning of the second month? $2,046.29 $2,083.29 $2,022.14 $2,059.14

Answer 1

I got 2,059.14

Because $1998. x (.145/12) + 37 = 2,059.15

Explanation:

Answer 2

Amount in my credit card = $1,998.00

APR = 14.5 %

Monthly APR =
`(14.5)/(12)=1.2083` %

Amount that i have to pay after first Month which i haven't paid

=1.2083 % of $ 1998.00

=
`(1.2083)/(100)* 1998.00\\\\ 24.14`$

Late fees = $ 37.00

Total amount that i have to pay at the beginning of Second month = Actual money in credit card + Interest + Late fees

= 1998 + 24.14 + 37

= 2035 +24.14

= $2059.14

→→→Option (D) $2,059.14 is right choice.