Chapter 5.1, Problem 46E

You have maxed out your credit card and owe $\$5,500$. Its interest rate is $21\%$. Each month, you make the minimum required payment of $\$35$

a. During the September $20$ through October $19$ billing period, you pay the minimum required payment on October $1$. Find the average daily balance, the finance charge, and the new balance. (The new balance includes the finance charge.)

b. During the October $20$ through November $19$ billing period, you pay the minimum required payment on November $11$. Find the average daily balance, the finance charge, and new balance.

c. During the November $20$ through December 19 billing period, you pay the minimum required payment on November $30$. Find the average daily balance.

d. Discuss the impact of making the minimum required payment, both on yourself and on the credit card issuer.