Question

You have a current credit card balance of $450.00, which you are paying off so you can close the account. No new purchases have been added this month, and interest is computed on the average daily balance method. The APR is 18%, and the minimum payment is 3%. If you make the minimum payment this month, what will the new balance be on the account? Please help.

Name: you have a current credit card balance of 45000 which you are paying off so you can close the account no new purchases have been added this month and interest is computed on the average dail 57314
Uploaded: 2022-04-20T12:48:55-08:00
Duration: 2 min 58 s
Channel: Jonathan Tapiwa
Description: you have a current credit card balance of 45000 which you are paying off so you can close the account no new purchases have been added this month and interest is computed on the average dail 57314

          You have a current credit card balance of $450.00, which you are paying off so you can close the account. No new purchases have been added this month, and interest is computed on the average daily balance method. The APR is 18%, and the minimum payment is 3%. If you make the minimum payment this month, what will the new balance be on the account? Please help.

Added by William Z.

Principles of Economics

Gregory Mankiw 8th Edition

Instant Answer

Solved by Expert Jonathan Tapiwa

04/20/2022

Step 1

The minimum payment is 3% of your current balance. Your current balance is $450.00. So, the minimum payment = 3% of $450.00 = 0.03 * $450.00 = $13.50. Show more…

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You have a current credit card balance of $450.00, which you are paying off so you can close the account. No new purchases have been added this month, and interest is computed on the average daily balance method. The APR is 18%, and the minimum payment is 3%. If you make the minimum payment this month, what will the new balance be on the account? Please help.