Answered

Benjamin's credit card has an APR of [tex]$19 \%$[/tex], calculated on the previous monthly balance, and a minimum payment of [tex]$2 \%$[/tex], starting the month after the first purchase. His credit card record for the last 7 months is shown in the table below.

\begin{tabular}{|c|c|c|c|c|c|c|}
\hline
End of month & Previous balance & New charges & Payment received & Finance charges & Principal paid & New balance \\
\hline
1 & [tex]$\$[/tex]0.00[tex]$ & $[/tex]\[tex]$2400.00$[/tex] & [tex]$\$[/tex]0.00[tex]$ & $[/tex]\[tex]$0.00$[/tex] & [tex]$\$[/tex]0.00[tex]$ & $[/tex]\[tex]$2400.00$[/tex] \\
\hline
2 & [tex]$\$[/tex]2400.00[tex]$ & $[/tex]\[tex]$0.00$[/tex] & [tex]$\$[/tex]48.00[tex]$ & $[/tex]\[tex]$38.00$[/tex] & [tex]$\$[/tex]10.00[tex]$ & $[/tex]\[tex]$2390.00$[/tex] \\
\hline
3 & [tex]$\$[/tex]2390.00[tex]$ & $[/tex]\[tex]$0.00$[/tex] & [tex]$\$[/tex]47.80[tex]$ & $[/tex]\[tex]$37.84$[/tex] & [tex]$\$[/tex]9.96[tex]$ & $[/tex]\[tex]$2380.04$[/tex] \\
\hline
4 & [tex]$\$[/tex]2380.04[tex]$ & $[/tex]\[tex]$0.00$[/tex] & [tex]$\$[/tex]47.60[tex]$ & $[/tex]\[tex]$37.68$[/tex] & [tex]$\$[/tex]9.92[tex]$ & $[/tex]\[tex]$2370.12$[/tex] \\
\hline
5 & [tex]$\$[/tex]2370.12[tex]$ & $[/tex]\[tex]$0.00$[/tex] & [tex]$\$[/tex]47.40[tex]$ & $[/tex]\[tex]$37.53$[/tex] & [tex]$\$[/tex]9.88[tex]$ & $[/tex]\[tex]$2360.25$[/tex] \\
\hline
6 & [tex]$\$[/tex]2360.25[tex]$ & $[/tex]\[tex]$0.00$[/tex] & [tex]$\$[/tex]47.20[tex]$ & $[/tex]\[tex]$37.37$[/tex] & [tex]$\$[/tex]9.83[tex]$ & $[/tex]\[tex]$2350.41$[/tex] \\
\hline
7 & [tex]$\$[/tex]2350.41[tex]$ & $[/tex]\[tex]$0.00$[/tex] & [tex]$\$[/tex]47.01[tex]$ & $[/tex]\[tex]$37.21$[/tex] & [tex]$\$[/tex]9.79[tex]$ & $[/tex]\[tex]$2340.62$[/tex] \\
\hline
\end{tabular}

What is the total amount that Benjamin has made in payments over the 7 months?



Answer :

GinnyAnswer
To determine the total amount Benjamin has made in payments over the 7 months, we need to sum up all the individual payments he has made each month. According to the given table, the monthly payments are as follows:

1. Month 1: \[tex]$0.00 2. Month 2: \$[/tex]48.00
3. Month 3: \[tex]$47.80 4. Month 4: \$[/tex]47.60
5. Month 5: \[tex]$47.40 6. Month 6: \$[/tex]47.20
7. Month 7: \[tex]$47.01 We add these payments together to find the total amount paid: \[ \$[/tex]0.00 + \[tex]$48.00 + \$[/tex]47.80 + \[tex]$47.60 + \$[/tex]47.40 + \[tex]$47.20 + \$[/tex]47.01 = \[tex]$285.01 \] Thus, the total amount Benjamin has made in payments over the 7 months is \(\$[/tex]285.01\).