Paying Off a Credit Card

Rosie, a newly graduated student, just moved to a new city to start her first job.

In order to assist her with moving expenses, she applied for a credit card. According to its terms, for any payment she makes within a month from the date of purchase, she will be charged no interest; however, if she does not pay off the full balance, compound interest will be charged daily on the remaining balance effective from the date of purchase. Every month she must make a minimum payment of $35, or 10% of the outstanding balance, whichever is larger.

On May 01, Rosie spent $1850 of her $2000 credit card limit buying furniture for her new apartment. She didn't make any other purchases in the month of May.