Question

Fill in the chart below using the information for Credit Card Finance. Mike starts with $1299.99 and an APR of 18% and makes no new purchases. The minimum payment is always 7%.

Answer 1

Explanation:

Step one:

given data

P= $1299.99

r=18%= 0.18

minimum rate r= 7%

t=1year

say the account is on simple interest the maximum payment is when the APR is 18%

A=P(1+rt)

A= 1299.99(1+0.18*1)

A= 1299.99(1.18)

A=1533.9882

$1533.9882

The minimum amount is when APR ia 7%

A=P(1+rt)

A= 1299.99(1+0.07*1)

A= 1299.99(1.07)

A=1390.9893

$1390.9893