How would i get the answer?

Question

The minimum monthly payment for Nadia's credit card is 2% of her balance or $10, whichever is higher. If Nadia's balance at the end of her last billing cycle was $350, what is her minimum monthly payment?
A. $7.00
B. $10.00
C. $17.20
D. $3.50

Answer 1

First we try to see what 2% of $350 is

 

So we turn 2% into a decimal

 

2% = 2/100 = 0.02 (Rule of thumb is to treat the percent sign like a decimal if the percent does not contain a decimal and move it to the left two decimal places. Just in case you are a visual learn 2. to .2 to ._2 = .02)

 

350 * .02 = 7.00

 

2% or $10, whichever is higher.

 

$10 is higher than $7

 

Therefore her minimum monthly payment is $10.00