Final answer:
The lump sum of principal and interest due in one month on a $650 credit card balance with a 20% annual interest rate is approximately $660.85.
Step-by-step explanation:
To find the lump sum of principal and interest due in one month on a credit card balance of $650 with an annual interest rate of 20%, we first need to calculate the monthly interest rate by dividing the annual rate by 12. The monthly interest rate is 20%/12 which is about 1.67%. The interest for one month on the $650 balance is $650 × 0.0167, which equals approximately $10.85. Therefore, the total amount due would be the sum of the principal and the interest, which is $650 + $10.85, equaling approximately $660.85.