Final Answer:
1. Month 1:
- Carry Over Balance: $90.99
- Finance Charge: $18.00
- New Balance: $1,308.99
- Minimum Payment: $91.62
2. Month 2:
- Carry Over Balance: $82.54
- Finance Charge: $16.60
- New Balance: $1,308.14
- Minimum Payment: $91.57
3. Month 3:
- Carry Over Balance: $74.01
- Finance Charge: $14.80
- New Balance: $1,297.81
- Minimum Payment: $90.85
4. Month 4:
- Carry Over Balance: $65.41
- Finance Charge: $13.08
- New Balance: $1,276.49
- Minimum Payment: $89.35
Step-by-step explanation:
Certainly, let's break down the calculations for each month:
1. Month 1:
- Carry Over Balance: $1299.99
- Finance Charge:** $1299.99 * (18% / 12) = $18.00 (Monthly interest calculation)
- New Balance: $1299.99 + $18.00 = $1,317.99
- Minimum Payment: $1,317.99 * 7% = $91.62 (Minimum payment as 7% of the new balance)
- Carry Over for Month 2: $1,317.99 - $91.62 = $1,226.37
2. Month 2:
- Carry Over Balance: $1,226.37
- Finance Charge: $1,226.37 * (18% / 12) = $16.60
- New Balance:$1,226.37 + $16.60 = $1,242.97
- Minimum Payment: $1,242.97 * 7% = $91.57
- Carry Over for Month 3: $1,226.37 - $91.57 = $1,134.80
3. Month 3:
- Carry Over Balance: $1,134.80
- Finance Charge: $1,134.80 * (18% / 12) = $14.80
- New Balance: $1,134.80 + $14.80 = $1,149.60
- Minimum Payment:$1,149.60 * 7% = $90.85
- Carry Over for Month 4: $1,134.80 - $90.85 = $1,043.95
4. Month 4:
- Carry Over Balance: $1,043.95
- Finance Charge: $1,043.95 * (18% / 12) = $13.08
- New Balance: $1,043.95 + $13.08 = $1,057.03
- Minimum Payment: $1,057.03 * 7% = $89.35
These calculations follow the given scenario of a starting balance, monthly interest rate, and minimum payment percentage. Each month, the finance charge is calculated based on the carry-over balance, and the new balance is determined by adding the finance charge to the previous carry-over balance. The minimum payment is then computed as 7% of the new balance, and the process rep