Question

What is the minimum monthly payment on Darryl's credit card?

1) $2.51
2) $5.00
3) $10.00
4) $20.00

Answer 1

The minimum monthly payment on Darryl's credit card is 2) $5.00.

Step-by-step explanation:

Credit card companies typically set a minimum monthly payment to ensure that cardholders make regular payments towards their outstanding balances. The minimum monthly payment is often a percentage of the total balance or a fixed amount, whichever is higher. In this case, the minimum monthly payment is specified as $5.00.

Paying only the minimum amount helps the cardholder avoid late fees and penalties but may result in the accrual of interest on the remaining balance. It's important for credit card users to be aware of and meet the minimum payment requirements to maintain good financial standing and avoid negative consequences.

In summary, the correct answer is 2) $5.00, as this represents the minimum monthly payment on Darryl's credit card.