Question

Carlos has a credit card with an APR of 14.99% and a credit limit of $1900. The minimum monthly payment is 4.5% of the new balance. If Carlos has a carryover balance of $350 from purchasing school supplies last month and doesn't pay off this balance, what will be Carlos's minimum payment at the end of this month?

Answer 1

Carlos's minimum payment for the month would be $15.75, which is calculated by taking 4.5% of his carryover balance of $350.

Step-by-step explanation:

The question asks about calculating the minimum payment for Carlos's credit card debt with an APR (Annual Percentage Rate) of 14.99% and a credit limit of $1900, given a carryover balance of $350 and a monthly minimum payment of 4.5% of the new balance.

To find Carlos's minimum payment at the end of this month, we simply calculate 4.5% of his carryover balance:

• Minimum Payment = 4.5% of $350
• Minimum Payment = 0.045 * $350
• Minimum Payment = $15.75

Therefore, Carlos's minimum payment for the month would be $15.75.