Homework Answers
Initial Balance = $750
Minimum Payment = 10%
Hence, 1st Payment = 10% of $750 = $75
Remaining Balance = B = 750 - 75 = $675
Interest will be accrued on this amount for one month
APR = 36%
Monthly Interest = r = APR/12 = 36/12 = 3%
Hence, Balance on which 2nd payment is to be made = B(1+r) = 675(1+0.03) = $695.25
Hence, 2nd Payment = 10% of Balance amount = 10% of $695.25 = $69.53
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