fran is going to transfer her credit - card balance over to a new card. she has an existing balance of…
fran is going to transfer her credit - card balance over to a new card. she has an existing balance of $752.69. her current card charges her a transfer fee of 12.5%, added to her balance, for transferring her debt. the new card has an opening fee of $50, which is also added to her balance. she will also have to make an immediate minimum payment, which is 3.35% of her total balance. how much will her balance be after she makes this payment, assuming that she pays the minimum amount? round all dollar values to the nearest cent.\na. $866.74\nb. $868.40\nc. $818.41\nd. $926.82\nplease select the best answer from the choices provided
Answer
Explanation:
Step1: Calculate transfer - fee amount
The transfer - fee is 12.5% of the existing balance of $752.69. So the transfer - fee amount is $752.69\times0.125 = 94.08625\approx94.09$.
Step2: Calculate balance after transfer - fee and opening fee
The balance after adding the transfer - fee and the opening fee of $50 to the existing balance is $752.69 + 94.09+50=896.78$.
Step3: Calculate minimum payment amount
The minimum payment is 3.35% of the total balance of $896.78. So the minimum payment amount is $896.78\times0.0335 = 30.04213\approx30.04$.
Step4: Calculate final balance
The final balance after making the minimum payment is $896.78−30.04 = 866.74$.
Answer:
A. $866.74$