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Jordan’s credit card has an APR of 10. 59%, compounded monthly. He is required to make a minimum payment of 3. 96% of his current balance every month. At the beginning of March, Jordan had a balance of $628. 16 on his credit card. The following table shows his credit card purchases over the next few months. Month Cost ($) March 50. 81 March 48. 04 April 77. 36 April 32. 40 April 49. 20 May 25. 79 May 79. 39 May 79. 08 If Jordan makes only the minimum monthly payments in March, April, and May, what will his balance be after he makes the minimum payment for May? (Assume that interest is compounded before the monthly payment is made, and that the monthly payment is applied at the end of the month. Round all dollar values to the nearest cent. ) a. $1,094. 10 b. $988. 97 c. $967. 60 d. $1,070. 23.

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Answer: To find Jordan's balance after he makes the minimum payment for May, we need to calculate his balance at the end of each month, taking into account his purchases, the interest charged, and the minimum payment made.

In March, Jordan's balance was $628.16 and he made a minimum payment of:

$628.16 x 3.96% = $24.92

His purchases in March totaled $50.81, so his balance after March was:

$628.16 + $50.81 = $678.97

The interest charged in March would be:

$678.97 x (10.59%/12) = $5.72

So his balance after interest was added in March would be:

$678.97 + $5.72 = $684.69

In April, Jordan's balance was $684.69 and he made a minimum payment of:

$684.69 x 3.96% = $27.13

His purchases in April totaled $77.36 + $32.40 + $49.20 = $159.96, so his balance after April was:

$684.69 + $159.96 = $844.65

The interest charged in April would be:

$844.65 x (10.59%/12) = $7.10

So his balance after interest was added in April would be:

$844.65 + $7.10 = $851.75

In May, Jordan's balance was $851.75 and he made a minimum payment of:

$851.75 x 3.96% = $33.77

His purchases in May totaled $25.79 + $79.39 + $79.08 = $184.26, so his balance after May would be:

$851.75 + $184.26 = $1,036.01

The interest charged in May would be:

$1,036.01 x (10.59%/12) = $8.71

So his balance after interest was added in May would be:

$1,036.01 + $8.71 = $1,044.72

Therefore, Jordan's balance after he makes the minimum payment for May would be $1,044.72, which is closest to answer (a) $1,094.10.

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