Fran is going to transfer her credit card balance over to a new card. She has an existing balance of $752.69. Her current card charges her a transfer fee of 12.5%, added to her balance, for transferring her debt. The new card has an opening fee of $50, which is also added to her balance. She will also have to make an immediate minimum payment, which is 3.35% of her total balance. How much will her balance be after she makes this payment, assuming that she pays the minimum amount? Round all dollar values to the nearest cent.

Question

Mathematics

Kaitlyn Leach

17 December, 13:26

Fran is going to transfer her credit card balance over to a new card. She has an existing balance of $752.69. Her current card charges her a transfer fee of 12.5%, added to her balance, for transferring her debt. The new card has an opening fee of $50, which is also added to her balance. She will also have to make an immediate minimum payment, which is 3.35% of her total balance. How much will her balance be after she makes this payment, assuming that she pays the minimum amount? Round all dollar values to the nearest cent.

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Answers (1)

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Braedon · Answer 1

Computing for transfer fee:

$752.7 x 0.125 = $94.1 (transfer fee)

$752 - $94.1 = $658.6

Deducting opening fee:

$658.6 - $50 (opening fee) = $608.6

Computing for minimum payment:

$608.6 x 0.0335 = $20.4 (minimum payment)

Deducting minimum payment:

$608.6-20.4 = $588.2

Therefore, Fran’s balance would be $588.2.