Question

Devin has a credit card with an APR of 15.99% and a credit limit of $1300. The minimum monthly payment is 4.5% of the new balance. If Devin has a carryover balance of $500 from purchasing office supplies last month and doesn't pay off this balance, what will be Devin's minimum payment at the end of this month?

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Answer 1

Devin's minimum payment on a credit card with a carryover balance of $500 and a minimum payment rate of 4.5% is $22.50.

Step-by-step explanation:

Devin has a credit card with an APR of 15.99% and a credit limit of $1300. The minimum monthly payment is calculated as 4.5% of the new balance.

Since Devin has a carryover balance of $500 and assuming no additional charges or fees for the sake of this calculation, the minimum payment would simply be 4.5% of $500.

To calculate Devin's minimum payment, we use the formula:

Minimum Payment = Balance × Minimum Payment Percentage

Minimum Payment = $500 × 4.5% = $500 × 0.045 = $22.50

Therefore, Devin's minimum payment at the end of this month would be $22.50.