Question

Bristol's credit card has a 30.99% APR, a minimum monthly payment of 3.5%, and a current statement balance of $4,186.19. She spends $750.00 in purchases and makes the current minimum monthly payment of $146.52. What will be Bristol's next minimum monthly payment?

Group of answer choices

Answer 1

To calculate Bristol's next minimum monthly payment, you'll need to consider the 3.5% minimum payment requirement and any new purchases. Here's how you can calculate it:

1. First, calculate the minimum payment based on the current statement balance:

Minimum Payment = Current Statement Balance x Minimum Payment Percentage

Minimum Payment = $4,186.19 x 0.035 = $146.06 (rounded to the nearest cent)

2. Bristol also made $750.00 in new purchases. So, add the new purchases to the minimum payment:

Minimum Payment + New Purchases = $146.06 + $750.00 = $896.06

So, Bristol's next minimum monthly payment will be $896.06.