The minimum amount you must pay each month is known as a. minimum monthly payment b. minimum finance charge c. annual fee d. annual percentage rate

Your question asks what would the minimum amount you pay each month is known as.

The reason why answer choice "A). minimum monthly payment" would be the correct answer is because this is what you call the payment in which you would pay a minimum fee for. The minimum monthly payment is known to be used in credit card payments. When someone gets their credit card statement each month, they could pay only the minimum fee the credit card company offers them. Whenever the balance or charge you used on the credit is high, then the minimum monthly payment increases as well.

This minimum monthly payment is not fairly good, due to the fact that if you're only paying the minimum for your monthly credit card payments, then you're never going to pay off your credit card, due to the fact that you will keep adding on balances or charges to the card and only pay off a little of it. This is why if you're going to use a credit card, make sure you can pay the thing in full, and try to avoid minimum monthly payments as much as possible.

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