3.72 Kevin Moore received his monthly credit card statement from his bank. His current outstanding balance is S3,168.97. The minimum monthly payment due is 1% of the outstanding balance or $20, whichever is higher. The bank uses the Average Daily Balance method to calculate the periodic interest charges. Show how the bank calculated the total estimated payments for the two scenarios: (a) the minimum payment only option and (b) S111 per month. Payment Information 3,168.97 $32.00 Minimum Payment Due (Current Month) Minimum Payment Due (Past Due) Total New Minimum Payment Due Payment Duo Date $0.00 3200 Fun 22,2011 Late Payment Warning If we do not receive your minimum payment by the date listed above, you may have to pay up to a $35.00 Late Foe Minimum Payment Warning: If you make only the mindmum payment each poriod, you will pay more in intereat and it will take you longer to pay off your balance. For example: If you make no additional charges using this card and each month you pay... You will pay off the balance shown on this statement in about... And you will end up paying an estimated total of... Only the minimum payment $111 9 yoars $5,408 $4,010 (Savings- $1,398) 3 years 3.72 Kevin Moore received his monthly credit card statement from his bank. His current outstanding balance is S3,168.97. The minimum monthly payment due is 1% of the outstanding balance or $20, whichever is higher. The bank uses the Average Daily Balance method to calculate the periodic interest charges. Show how the bank calculated the total estimated payments for the two scenarios: (a) the minimum payment only option and (b) S111 per month. Payment Information 3,168.97 $32.00 Minimum Payment Due (Current Month) Minimum Payment Due (Past Due) Total New Minimum Payment Due Payment Duo Date $0.00 3200 Fun 22,2011 Late Payment Warning If we do not receive your minimum payment by the date listed above, you may have to pay up to a $35.00 Late Foe Minimum Payment Warning: If you make only the mindmum payment each poriod, you will pay more in intereat and it will take you longer to pay off your balance. For example: If you make no additional charges using this card and each month you pay... You will pay off the balance shown on this statement in about... And you will end up paying an estimated total of... Only the minimum payment $111 9 yoars $5,408 $4,010 (Savings- $1,398) 3 years