A credit card company determines a card holder's minimum
monthly payment by adding all new interest to 1.5% of the
outstanding principal. The credit card company charges an interest
rate of 0.05991% per day. On November 19, a customer used his
credit card to pay for the following business expenses: van
repairs ($702), equipment maintenance ($384), office supplies
($109), and dinner with clients ($122). Use the given
information and the rule that minimum payments are rounded up to
the nearest dollar to answer parts a and b below.
a. Assuming the card holder had no new interest, determine his
minimum payment due on December 1, his billing date. The card
holder's minimum payment due on December 1 is $ 20.
b. On December 1, instead of making his minimum
payment, the card holder makes a payment of $. Assuming there are
no additional charges or cash advances, determine the card
holder's minimum payment on January 1. The card holder's minimum
payment due on January 1 is $