Shen Chem's credit card company determines his minimum monthly payment by adding all new interest to 1% of theoutstanding principal. The credit card company charges an interest rate of 0.038883% per day. On March 18, Shiing useshis credit card to purchase airline tickets for his family for $2200. He makes no other purchases during March. Use the giveninformation and the rule that minimum payments are rounded up to the nearest dollar to answer parts a and b belowa) Assuming Shiing had no new interest, determine Shiing's minimum payment due on April 1, his billing date.Shiing's minimum payment due on April 1 is $b) On April 1, instead of making the minimum payment, Shiing makes a payment of $600. Assuming there are no additionalcharges or cash advances, determine Shiing's minimum payment due on May 1Shiing's minimum payment due on May 1 is $

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Asked Nov 14, 2019
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Shen Chem's credit card company determines his minimum monthly payment by adding all new interest to 1% of the
outstanding principal. The credit card company charges an interest rate of 0.038883% per day. On March 18, Shiing uses
his credit card to purchase airline tickets for his family for $2200. He makes no other purchases during March. Use the given
information and the rule that minimum payments are rounded up to the nearest dollar to answer parts a and b below
a) Assuming Shiing had no new interest, determine Shiing's minimum payment due on April 1, his billing date.
Shiing's minimum payment due on April 1 is $
b) On April 1, instead of making the minimum payment, Shiing makes a payment of $600. Assuming there are no additional
charges or cash advances, determine Shiing's minimum payment due on May 1
Shiing's minimum payment due on May 1 is $
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Shen Chem's credit card company determines his minimum monthly payment by adding all new interest to 1% of the outstanding principal. The credit card company charges an interest rate of 0.038883% per day. On March 18, Shiing uses his credit card to purchase airline tickets for his family for $2200. He makes no other purchases during March. Use the given information and the rule that minimum payments are rounded up to the nearest dollar to answer parts a and b below a) Assuming Shiing had no new interest, determine Shiing's minimum payment due on April 1, his billing date. Shiing's minimum payment due on April 1 is $ b) On April 1, instead of making the minimum payment, Shiing makes a payment of $600. Assuming there are no additional charges or cash advances, determine Shiing's minimum payment due on May 1 Shiing's minimum payment due on May 1 is $

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Expert Answer

Step 1

a) Since Shiing had no new interest to pay, the minimum payment due payable by Shiing on April 1 is,

 

1
$2200 x1% $2200 x
100
-$22
Shiing's minimum payment due on April 1 is $22.
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1 $2200 x1% $2200 x 100 -$22 Shiing's minimum payment due on April 1 is $22.

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Step 2

Compute the 1% of the principal amount...

1
= $16
100
$1600 x
The total amount or payment due on May 1 is
$25.66 $16 $41.66
$41.7
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1 = $16 100 $1600 x The total amount or payment due on May 1 is $25.66 $16 $41.66 $41.7

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