Problema Solution

Antonio has a balance of $5714.55 on a credit card with an annual percentage rate (APR) of 21.4% He decides not to make any additional purchases with his card until he has paid off the balance. Find the amount of interest and the amount applied to reduce the principal in the minimum payment.

Answer provided by our tutors

amount of interest = balance * rate * time

                           = 5714.55 * 21.4/100 * 1

                           = $1222.91

the principal in the minimum payment = 5714.55 - 1222.91

                                                       = $4491.64