Question

I need help with the last question of this problem: "A machine shop has a credit card that offers rebates on purchases. At the end of May, the company had a credit card bill of $19,477.47. The company must make a minimum payment that is the greater of $500 or 4.5% of the credit card bill."

What is 4.5% of the credit card bill (in dollars)? (Enter a number. Round your answer to the nearest cent.)

ANSWER: $876.49 = GREATER

What is the minimum monthly payment (in dollars) for May? (Enter a number. Round your answer to the nearest cent.)

$???.??

Answer 1

Explanation:

At the end of May, the company had a credit card bill of $19,477.47.

The company must make a minimum payment that is the greater of $500 or 4.5% of the credit card bill. Therefore, 4.5% of the credit card bill would be

4.5/100 × 19477.47 = 0.045 × 19477.47

= 876.5 rounded up to the nearest cent.

Since the company must make a minimum payment that is the greater of $500 or 4.5% of the credit card bill, then the minimum monthly payment for May is

$876.5 rounded up to the nearest cent.