Question

Guadalupe's credit card has an APR of 23%, calculated on the previous
monthly balance, and a minimum payment of 2%, starting the month after the
first purchase. Her credit card record for the last 7 months is shown in the
table below.
End of
month
1
2.
3
O UN
Previous
balance
50 00
5900.00
5899 25
$898 50
$897 75
$897 00
$896 26
New
charges
$900 00
$0.00
50.00
$0.00
SO 00
$0.00
$0 00
Payment
received
$0.00
$18.00
$17 99
$17 97
$17.96
$17.94
$1793
Finance
charges
$0.00
$17.25
$17.24
$17 22
$1721
$17 19
$17 18
Principal
paid
$0.00
$0.75
$0.75
50.75
50 75
50 75
$0.75
New
balance
$900.00
$899.25
$898.50
$897 75
5897.00
$896 26
*5895 51
5
6
7
How is the principal paid calculated?
A. Payment received - finance charge
B. Interest.previous balance
C. Payment received + finance charge
D. Previous balance + new charges + principal paid

Answer 1

The principal that was paid as part of the payment can be found as A. Payment received - finance charge.

How do we find the principal paid?

Every payment made includes two components which are the principal repayment and the finance charge.

In order to find the principal paid therefore, we can change the subject as shown below:

Payment = Principal + Finance charge

Principal = Payment - Finance charge

In conclusion, option A is correct.

Find out more on credit card payments at https://brainly.com/question/2522722.

Answer 2

Answer:Interest • previous balance

Explanation: just took test