Interest charges

[Pens8675309]

Juan charges up to the credit card limit of $5,000 each month. He pays the minimum payment of $125. After finding the interest charge for the unpaid balance that month if the interest rate is 18% per year, how much money is available on the credit card ?

 

[Deleted member 4993]

Juan charges up to the credit card limit of $5,000 each month. He pays the minimum payment of $125. After finding the interest charge for the unpaid balance that month if the interest rate is 18% per year, how much money is available on the credit card ?

The post above doesn't make sense to me!

If it is an assigned problem, please post the EXACT problem!

 

[HallsofIvy]

If he owes $5000 and pays $125 he still owes $4875. 18/12= 1.5% per month. $4875(0.015)= $73.13 for that month so he still owes $4875+ 73.13= 4952.13. He has $5000- 4953.13= $46.87 available of the $5000 cap.

 

[nasi112]

The post above doesn't make sense to me!

If it is an assigned problem, please post the EXACT problem!

Then, how HallsofIvy could solve it?

 

[Deleted member 4993]

Then, how HallsofIvy could solve it?

Do you agree with HOI's solution?

.......he still owes $4875+ 73.13= 4952.13

Did you work out the addition??

I still don't understand the question ...... if you (@nasi112 ) do please explain!!

 

[HallsofIvy]

One of these days, I really need to learn to add!

 

[nasi112]

Do you agree with HOI's solution?
Did you work out the addition??

I still don't understand the question ...... if you (@nasi112 ) do please explain!!

I was lost same as you when I first looked at the problem, but HallsofIvy solution is clear and logical.

 

[Pens8675309]

The post above doesn't make sense to me!

If it is an assigned problem, please post the EXACT problem!

That's exactly how it's worded