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Marcus has a balance of $1,700 on his credit card. The credit card has an annual interest rate of 18%, compounded monthly (1.5% each month).
Marcus has a balance of $1,700 on his credit card. The credit card has an annual interest rate of 18%, compounded monthly (1.5% each month). Marcus uses his credit card for various expenses throughout month and, at the end of each month, makes a $250 payment. Use this information to complete the table below. Round to the nearest cent as needed.
Month | Prior Balance | 1.5% Interest on Prior Balance | Additional Charges | Monthly Payment | Ending Balance |
---|---|---|---|---|---|
1 | $1700 | ||||
2 | $1700 | $ | $281 | $250 | $ |
3 | $ | $ | $278 | $250 | $ |
4 | $ | $27.16 | $370 | $250 | $1958.01 |
5 | $1958.01 | $ | $172 | $250 | $ |
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