##### Interest rates and payments

label Mathematics
account_circle Unassigned
schedule 1 Day
account_balance_wallet \$5

You have a credit card with \$5270.00 balance and an APR of 15.53%

What is the monthly % rate?

If a payment of \$105.40 is made in a month how much goes to interest and how much to principal.

Please explain how you get this so I can learn it. Thank you

Dec 24th, 2014

1)Most credit cards require that you pay a minimum monthly payment of two percent of the balance. Based upon a balance of \$5,270.00, what would be the minimum monthly payment (assuming no other fees are being applied)?

MINIMUM PAYMENT: 2 *52.7 = \$105.40

2) Considering the minimum payment you just calculated, determine the amount of interest and the amount that was applied to reduce the principal

. Amount towards principle \$37.20 Amount toward interest \$ 68.20

Dec 24th, 2014

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Dec 24th, 2014
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Dec 24th, 2014
Aug 16th, 2017
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