Questions: A credit card company determines a card holder's minimum monthly payment by adding all new interest to 1.5% of the outstanding principal. The credit card company charges an interest rate of 0.05545% per day. On November 10, a customer used his credit card to pay for the following business expenses: van repairs (996), equipment maintenance (487), office supplies (72), and dinner with clients (155). Use the given information and the rule that minimum payments are rounded up to the nearest dollar to answer parts a and b below. a. Assuming the card holder had no new interest, determine his minimum payment due on December 1, his billing date. The card holder's minimum payment due on December 1 is square.

A credit card company determines a card holder's minimum monthly payment by adding all new interest to 1.5% of the outstanding principal. The credit card company charges an interest rate of 0.05545% per day. On November 10, a customer used his credit card to pay for the following business expenses: van repairs (996), equipment maintenance (487), office supplies (72), and dinner with clients (155). Use the given information and the rule that minimum payments are rounded up to the nearest dollar to answer parts a and b below. a. Assuming the card holder had no new interest, determine his minimum payment due on December 1, his billing date. The card holder's minimum payment due on December 1 is square.
Transcript text: A credit card company determines a card holder's minimum monthly payment by adding all new interest to $1.5 \%$ of the outstanding principal. The credit card company charges an interest rate of $0.05545 \%$ per day. On November 10, a customer used his credit card to pay for the following business expenses: van repairs (\$996), equipment maintenance (\$487), office supplies (\$72), and dinner with clients (\$155). Use the given information and the rule that minimum payments are rounded up to the nearest dollar to answer parts a and b below. a. Assuming the card holder had no new interest, determine his minimum payment due on December 1, his billing date. The card holder's minimum payment due on December 1 is $\$ \square$.
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Solution

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Solution Steps

Step 1: Calculate Total Outstanding Principal

The total outstanding principal is the sum of all business expenses: \[ \text{Total Outstanding Principal} = 996 + 487 + 72 + 155 = 1710 \]

Step 2: Calculate Minimum Payment Percentage

The minimum payment is calculated as \(1.5\%\) of the total outstanding principal: \[ \text{Minimum Payment} = 0.015 \times 1710 = 25.65 \]

Step 3: Round Up Minimum Payment

The minimum payment is rounded up to the nearest dollar: \[ \text{Minimum Payment Rounded} = \lceil 25.65 \rceil = 26 \]

Final Answer

The card holder's minimum payment due on December 1 is \(\boxed{26}\).

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