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