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.

Economics Today and Tomorrow, Student Edition

1st Edition

ISBN:9780078747663

Author:McGraw-Hill

Publisher:McGraw-Hill

Chapter4: Going Into Debt

Section: Chapter Questions

Problem 29AA

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