A student has a credit card that is only used for school expenses. Their fall tuition was $1295, and the cost of books was $100.

Question

A student has a credit card that is only used for school expenses. Their fall tuition was $1295, and the cost
of books was $100. Both of these are put onto their credit card.
a) Suppose these are the only two expenses on their credit card. When the bill arrives, they pay the
minimum payment of $30. How much will be left on their credit card bill and therefore subject to interest?
b) If the annual interest rate for their credit card is 17.99%, what is the periodic (monthly) interest rate, to 2 decimal places?
c) How many dollars of interest will be added to their bill for the next month, to the nearest cent?

Kunduz · Accepted Answer

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