ChuDunnoMe
contestada

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?

A.$48.75
B.$40.00
C.$8.75
D.$88.75

Respuesta :

Jiggyfly
1950 * .025
48.75
A
When you do these problems, you must make sure you put this percent into decimal form before punching it into your calculator. 

Answer:

A. $48.75.

Step-by-step explanation:

We have been given that the minimum monthly payment for Fern's credit card is 2.5% of her balance or $40, whichever is higher.

First of all let us find 2.5% of $1950.

[tex]\text{2.5\% of \$1950}=\frac{2.5}{100}\times \$1950[/tex]

[tex]\text{2.5\% of \$1950}=0.025\times \$1950[/tex]

[tex]\text{2.5\% of \$1950}=\$48.75[/tex]

Since the minimum monthly payment will be the higher amount among 2.5% of the balance or $40. As $48.75 is higher than $40, therefore, Fern's minimum monthly payment will be $48.75 and option A is the correct choice.