Question

Bridgette opened a store credit card to purchase a business suit for $463. She put the entire purchase on the credit card. Her APR is 14.99% and the minimum payment is 5%. Assuming she makes only minimum payments, what is the remaining balance on her card after 3 months? Can someone help me .

Answer 1

Begin by computing the monthly interest rate like this:
$\frac{14.99}{12}=1.25$
Each month, we have to substract from $463 the monthly rate and the payment of 5%, which result in the following formula:
$463(1-(0.05+0.0125))^3=463\times0,9375^3\\=381.5$

So, after three months, it ill remains $381.5 in Bridgette account.