QUESTION 3

Part A: You owe $30,000 on your credit card. The credit card charges interest monthly and has an APR of 18.0%. With $620 monthly payment, what is the principal payment for the first payment?

a. 170

b. 160

c. 150

d. 140

Part B: You owe $30,000 on your credit card. The credit card charges interest monthly and has an APR of 18.0%. With $620 monthly payment, what is the interest payment for the second payment?

a. 247.45

b. 347.45

c. 447.45

d. 467.45