Question

Janice owes $8,500 on her credit card with a minimum percentage of 2% and a minimum payment of $100. What's the lowest amount of money she can send to her credit card company without incurring any interest?

Answer 1

The lowest amount of money Janice can send to her credit card company without incurring any interest is $100, which is the minimum payment.

Step-by-step explanation:

The lowest amount of money Janice can send to her credit card company without incurring any interest is $100, which is the minimum payment.

If the minimum percentage is 2% and the remaining balance is $8,500, then the minimum payment would be calculated as:

Minimum Payment = Minimum Percentage * Balance

Minimum Payment = 2% * $8,500

Minimum Payment = $8,500 * 0.02

Minimum Payment = $170

However, since the minimum payment is $100, Janice can send that amount and avoid paying interest.