# 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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Step 1

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

Step 2

Compute the 1% of the principal amount...

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