Carlton's credit card has an APR of [tex]$17 \%$[/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}{ccccccc}
\hline
\begin{tabular}{l}
End of \\
month
\end{tabular} & \begin{tabular}{c}
Previous \\
balance
\end{tabular} & \begin{tabular}{c}
New \\
charges
\end{tabular} & \begin{tabular}{c}
Payment \\
received
\end{tabular} & \begin{tabular}{c}
Finance \\
charges
\end{tabular} & \begin{tabular}{c}
Principal \\
paid
\end{tabular} & \begin{tabular}{c}
New \\
balance
\end{tabular} \\
\hline
1 & [tex]$\$[/tex] 0.00[tex]$ & $[/tex]\[tex]$ 4400.00$[/tex] & [tex]$\$[/tex] 0.00[tex]$ & $[/tex]\[tex]$ 0.00$[/tex] & [tex]$\$[/tex] 0.00[tex]$ & $[/tex]\[tex]$ 4400.00$[/tex] \\
2 & [tex]$\$[/tex] 4400.00[tex]$ & $[/tex]\[tex]$ 0.00$[/tex] & [tex]$\$[/tex] 88.00[tex]$ & $[/tex]\[tex]$ 62.33$[/tex] & [tex]$\$[/tex] 25.67[tex]$ & $[/tex]\[tex]$ 4374.33$[/tex] \\
3 & [tex]$\$[/tex] 4374.33[tex]$ & $[/tex]\[tex]$ 0.00$[/tex] & [tex]$\$[/tex] 87.49[tex]$ & $[/tex]\[tex]$ 61.97$[/tex] & [tex]$\$[/tex] 25.52[tex]$ & $[/tex]\[tex]$ 4348.82$[/tex] \\
4 & [tex]$\$[/tex] 4348.82[tex]$ & $[/tex]\[tex]$ 0.00$[/tex] & [tex]$\$[/tex] 86.98[tex]$ & $[/tex]\[tex]$ 61.61$[/tex] & [tex]$\$[/tex] 25.37[tex]$ & $[/tex]\[tex]$ 4323.45$[/tex] \\
5 & [tex]$\$[/tex] 4323.45[tex]$ & $[/tex]\[tex]$ 0.00$[/tex] & [tex]$\$[/tex] 86.47[tex]$ & $[/tex]\[tex]$ 61.25$[/tex] & [tex]$\$[/tex] 25.22[tex]$ & $[/tex]\[tex]$ 4298.23$[/tex] \\
6 & [tex]$\$[/tex] 4298.23[tex]$ & $[/tex]\[tex]$ 0.00$[/tex] & [tex]$\$[/tex] 85.96[tex]$ & $[/tex]\[tex]$ 60.89$[/tex] & [tex]$\$[/tex] 25.07[tex]$ & $[/tex]\[tex]$ 4273.16$[/tex] \\
7 & [tex]$\$[/tex] 4273.16[tex]$ & $[/tex]\[tex]$ 0.00$[/tex] & [tex]$\$[/tex] 85.46[tex]$ & $[/tex]\[tex]$ 60.54$[/tex] & [tex]$\$[/tex] 24.93[tex]$ & $[/tex]\[tex]$ 4248.23$[/tex] \\
\hline
\end{tabular}

How much of the [tex]$\$[/tex] 4400[tex]$ charge that Carlton made during the first month has been paid off?

A. $[/tex]\[tex]$ 24.93$[/tex]
B. [tex]$\$[/tex] 151.77[tex]$
C. $[/tex]\[tex]$ 520.36$[/tex]
D. [tex]$\$[/tex] 368.59$



Answer :

To determine how much of the \[tex]$4400 charge that Carlton made during the first month has been paid off, we need to sum the principal amounts that have been paid each month. Let's look at the principal paid column in the table: - Month 2: \$[/tex]25.67
- Month 3: \[tex]$25.52 - Month 4: \$[/tex]25.37
- Month 5: \[tex]$25.22 - Month 6: \$[/tex]25.07
- Month 7: \[tex]$24.93 Now, we add up all these principal payments to find the total principal paid off after 7 months: \[ 25.67 + 25.52 + 25.37 + 25.22 + 25.07 + 24.93 = 151.78 \] So, the total principal paid off is \$[/tex]151.78.

Therefore, the amount of the \$4400 charge that Carlton made during the first month that has been paid off is:

[tex]\[ \boxed{151.77} \][/tex]