The minimum monthly payment for Alicia' credit card is 2% of her balance or 10$. If her balance at the end was $470. What is her minimum monthly payment?

Question

Apex...

 

A. $9.40

B. $2.80

C. $10.00

D. $17.20

Answer 1

You must find both values (2% and $10) and compare the values.  Then, choose the "minimum" payment.

 

  (2/100)*$470 = $9.40

 

"The minimum payment is the lowest amount of money that you are required to pay on your credit card statement each month." -- CreditCards.com

 

Now, don't get confused.  Alicia must pay at least $10 or 2% of her balance (if that value is more than $10).  So, you must choose the larger of the two values to be the minimum payment.

 

For example, if Alicia's balance was $2000, she would have a minimum payment of $40.

 

Alicia's minimum payment this month is $10.