Question

1. debbie has an unpaid credit card balance of $568.93. her credit card company charges 24% per year, counting each day that an amount is owed. if she did not pay anything on july 10, her due date, how much does she owe on her next statement date, august 2? july has 31 days.

1. stuart has an unpaid credit card balance of $268.67. what is his minimum payment if his credit card company charges an interest rate of 18.25%, and stuart must pay 3% or $25, whichever is greater?

Explanation:

(Problem 4):

Step1: Calculate days owed

Days from July 10 to Aug 2: $31 - 10 + 2 = 23$ days

Step2: Find daily interest rate

Daily rate = $\frac{0.24}{365}$

Step3: Calculate total interest

Interest = $568.93 \times \frac{0.24}{365} \times 23$
Interest $\approx 568.93 \times 0.0006575 \times 23 \approx 8.62$

Step4: Compute total owed

Total = $568.93 + 8.62$

(Problem 5):

Step1: Calculate 3% of balance

$0.03 \times 268.67 = 8.06$

Step2: Compare to $25$

$8.06 < 25$, so use the greater value

Answer:

1. Debbie owes $\$577.55$
2. Stuart's minimum payment is $\$25$