Problema Solution
Antonio has a balance of $ 5714.55 on a credit card with an annual pertentage rate (APR) of 21.4% He decides not to make any additional purchases with his card until he has paid off the balance. If Antonio has transferde his balance to a card with an APR of 12.5%, how much of his first payment would be applied to reduce the principal?
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
Antonio has transferde his balance to a card with an APR of 12.5% so
= 12.5/100 * 4491.64
= 561.45
reduce the principal = 4491.91 - 561.45
= $3930.45