Assuming that there are no other transactions or fees on the credit card, here's how to calculate the unpaid balance, new interest, and purchasing power on the credit card after the minimum monthly payment is made:
1.) Unpaid Balance: The unpaid balance is the amount of the credit card balance that remains after making the minimum monthly payment. In this case, the minimum monthly payment is $125, so the unpaid balance would be:
$5000 - $125 = $4875
2.) Interest Charge: The interest charge for unpaid balances is 18% per year. To calculate the monthly interest rate, divide the annual rate by 12:
18% / 12 = 1.5%
3.) To calculate the interest charge for the month, multiply the unpaid balance by the monthly interest rate:
$4875 x 1.5% = $73.13
So the new interest charge for the month is $73.13.
4.) Purchasing Power: Purchasing power refers to the amount of credit that is available on the credit card after making the minimum monthly payment and accounting for any interest charges. To calculate the purchasing power, subtract the unpaid balance and interest charge from the credit limit:
$5000 - $4875 - $73.13 = $51.87
So the purchasing power on the credit card after the minimum monthly payment is made is $51.87.