The minimum monthly payment for Fern's credit card is 2.5% of her balance or $40, whichever is higher. If Fern's balance at the end of her last billing cycle was $1950, what is her minimum monthly payment?

Question

Maribel Daugherty

Mathematics

16 June, 17:55

The minimum monthly payment for Fern's credit card is 2.5% of her balance or $40, whichever is higher. If Fern's balance at the end of her last billing cycle was $1950, what is her minimum monthly payment?

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Answers (1)

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Carlo Brewer · Answer 1

We need to calculate which is higher ... 2.5% OR $40.

1950 *.025 = $48.75

Thus, 2.5% is higher than $40. So, if allowed, she would opt for the $40 payment.