You have a balance of $15,300 on your credit card with an annual interest rate of 185 (1.5% interest rate per month) You pay $200 this month. Did your balance go up or down?

Question

Clayton

Mathematics

6 February, 10:06

You have a balance of $15,300 on your credit card with an annual interest rate of 185 (1.5% interest rate per month) You pay $200 this month. Did your balance go up or down?

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Nikita · Answer 1

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Normally, payment is first applied to interest before it is applied to the principal. Since your payment is larger than the interest, your remaining balance will go to the principal. As a result, your balance will go down.