Answer:No, Martin will not be charged any interest next month if he only makes the minimum payment of £40.
Explanation:
1. Martin's monthly credit card statement shows that his balance is £135.
2. The minimum payment due is £40, which Martin decides to make.
3. The interest rate on his credit card is 17%.
To calculate whether Martin will be charged any interest next month, we need to compare his minimum payment with the interest that would be charged on his remaining balance.
The interest on the remaining balance is calculated as the balance multiplied by the interest rate (17%). So, the interest charged next month would be £135 x 0.17 = £22.95.
Since Martin is making the minimum payment of £40, which is higher than the calculated interest (£22.95), he will not be charged any interest next month. The remaining balance after making the minimum payment would be £135 - £40 = £95.
In summary, as long as Martin makes the minimum payment of £40, he will not be charged any interest next month. It's always a good idea to pay more than the minimum payment to reduce the overall interest charges and pay off the balance faster.
Do you get it?