Question

You have credit card with a balance of 9,300$, and a monthly interest rate of 3% on any unpaid balance. You make the minimum payment of 271$ for two months. You pay interest on the rest of the balance. What is your credit card balance after two months?

Answer 1

$9,291.36

Explanation:

Based on the information provided in this question, since we know that the individual is not paying any interest the first two months since he made the minimum payments then we can go ahead and deduct the two payments of $271 from his initial balance

$9300 - $271 - $271 = $8,758

Now assuming that no other payments have been made since the question states that interest is added to the rest of the balance we can simply multiply the balance by 1.03 which is a 3% interest increase in decimal form.

$8758 * 1.03 = $9020.74 ... now multiply by 1.03 for the second month

$9020.74 * 1.03 = $9291.36

Therefore after 2 months, his credit card balance would be $9,291.36