Question

Using the overdraft protection line. Isabella Harris has an overdraft protection line. Assume that her October 2015 statement showed a latest (new) balance of $862. If the line had a minimum monthly payment requirement of 5 percent of the latest balance (rounded to the nearest $5 figure), then what would be the minimum amount that she’d have to pay on her overdraft protection line?

Answer 1

$45

Step-by-step explanation:

Calculation for what would be the minimum amount that Isabella Harris have to pay on her overdraft protection line

Using this formula

Percentage of monthly payment requirement × The new balance

Let plug the formula

5% * 862 = 43.1

Now we are going to round it to nearest $5

Thus, to the nearest $5 will be $45.

Therefore what would be the minimum amount that Isabella Harris have to pay on her overdraft protection line would be $45