Jackson is paying his current credit card bill. His bill says he had a starting balance of $2,500, an interest charge of $31.25, and a credit of $45 (from his last payment). a. What is the remaining balance on his credit card? b. His credit card company requires him to pay a minimum payment that consists of the current interest charge plus 1% of his balance. What is Jackson's mini- mum payment this month? c. If Jackson makes only this minimum payment, how much of his payment goes towards interest and how much goes towards paying off the balance on the credit card? Give you answer in both dollars and percents.

Jackson is paying his current credit card bill. His bill says he had a starting balance of $2,500, an interest charge of $31.25, and a credit of $45 (from his last payment). a. What is the remaining balance on his credit card? b. His credit card company requires him to pay a minimum payment that consists of the current interest charge plus 1% of his balance. What is Jackson's mini- mum payment this month? c. If Jackson makes only this minimum payment, how much of his payment goes towards interest and how much goes towards paying off the balance on the credit card? Give you answer in both dollars and percents.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Jackson is paying his current credit card bill. His bill says he had a starting balance
of $2,500, an interest charge of $31.25, and a credit of $45 (from his last payment).
a. What is the remaining balance on his credit card?
b. His credit card company requires him to pay a minimum payment that consists
of the current interest charge plus 1% of his balance. What is Jackson's mini-
mum payment this month?
c. If Jackson makes only this minimum payment, how much of his payment goes
towards interest and how much goes towards paying off the balance on the credit
card? Give you answer in both dollars and percents.
d. What is the remaining balance on his credit card the next month?

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