The total amount that Salvatore has paid in interest over the 7 months is $64.73. The total amount that Salvatore has made in payments over the 7 months is $175.00. $80.73 Salvatore's payments has gone to paying down the principal on his account. Salvatore's new balance at the end of month is $1473.01.
Part 1: What is the total amount that Salvatore has paid in interest over the 7 months?
To find the total amount of interest paid, we need to add up the finance charges for each month. These are listed in the "Finance Charges" column of the table.
Month | Finance Charge
1 | $0.00
2 | $6.62
3 | $7.61
4 | $10.02
5 | $10.54
6 | $14.52
7 | $15.92
Adding up these numbers, we get a total of $64.73 in interest charges.
Part 2: What is the total amount that Salvatore has made in payments over the 7 months?
To find the total amount of payments made, we need to add up the payments received for each month. These are listed in the "Payment Received" column of the table.
Month | Payment Received
1 | $0.00
2 | $25.00
3 | $25.00
4 | $25.00
5 | $25.00
6 | $25.00
7 | $25.00
Adding up these numbers, we get a total of $175.00 in payments made.
Part 3: How much of Salvatore's payments has gone to paying down the principal on his account?
To find out how much of Salvatore's payments has gone to principal, we need to subtract the finance charges from the payments made for each month.
Month | Payment Received | Finance Charge | Principal Paid
1 | $0.00 | $0.00 | $0.00
2 | $25.00 | $6.62 | $18.38
3 | $25.00 | $7.61 | $17.39
4 | $25.00 | $10.02 | $14.98
5 | $25.00 | $10.54 | $14.46
6 | $25.00 | $14.52 | $10.48
7 | $25.00 | $15.92 | $9.08
Adding up the principal paid for each month, we get a total of $80.73 in principal payments.
Part 4: What is Salvatore's new balance at the end of month 8?
To find Salvatore's new balance at the end of month 8, we need to add the finance charges for month 8 to his ending balance for month 7.
New balance at end of month 7 = $1281.91 (from the table)
Finance charge for month 8 = 14.9% * $1281.91 = $191.10
Therefore, Salvatore's new balance at the end of month 8 would be $1281.91 + $191.10 = $1473.01.
The probable question may be:"Salvatore's credit card has an APR of 14.9% calculated on the previous monthly balance. His credit card record for the last 7 months is shown in the table below.Salvatore is trying to figure out what this all means. Help him by answering the following questions. Part 1: What is the total amount that Salvatore has paid in interest over the 7 months? Part II: What is the total amount that Salvatore has made in payments over the 7 months? Part III: How much of Salvatore's payments has gone to paying down the principal on his account? Part IV: What is Salvatore's new balance at the end of month 8? Part V: What will Salvatore be charged for interest for month 8?"