Juanita's credit card has an APR of 22%, calculated on the previous monthly
balance, and a minimum payment of 2%, starting the month after the first
purchase. Her credit card record for the last 7 months is shown in the table
below.
End of
month
1
2
3
4
5
6
7
Previous
balance
$0.00
$2700.00
$2695.50
$2691.01
$2686.52
$2682.04
$2677.57
New
charges
$2700.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
Payment
received
$0.00
$54.00
$53.91
$53.82
$53.73
$53.64
$53.55
Finance
charges
$0.00
$49.50
$49.42
$49.34
$49.25
$49.17
$49.09
Principal
paid
$0.00
$4.50
$4.49
$4.49
$4.48
$4.47
$4.46
New
balance
$2700.00
$2695.50
$2691.01
$2686.52
$2682.04
$2677.57
$2673.11
What is the total amount that Juanita has made in payments over the 7
months?
A 26.89
B 322.65
C 295.77
D 53.55