Answer:
Q1: $1,360, Q2: $30.83, Q3: $325.50, Q4: $75
Explanation:
QUESTION 1:
If the minimum payment is made and no additional charges are made, the balance next month should be $1,400 minus 3% of $1,400, which is $1,360.
QUESTION 2:
To calculate the interest charged for the month, we need to determine the average daily balance. Assuming no other transactions, the average daily balance would be (($2,500 * 20) + ($1,100 * 10)) / 31 = $2,032.26. Multiply this by the APR of 18% and divide by 365 to get the daily interest rate. The interest charged for the month would be approximately ($2,032.26 * 0.18) / 365 * 31 = $30.83.
QUESTION 3:
After making the first minimum pyment, the new balance would be $350 minus 7% of $350, which is $325.50.
To calculate the minimum payment due the next month, we take 7% of the new balance, which is 7% of $325.50, equal to $22.79 (rounded to the nearest cent).
QUESTION 4:
The minimum payment required on a balance of $2,500 would be 3% of $2,500, which is $75.