Sonja's credit card has an APR of 21%, calculated on the previous monthly balance, and a minimum payment of 2%, starting the month after the first
purchase. Her credit card record for the last 7 months is shown in the table
below.
End of Previous New Payment Finance Principal New
month balance
charges received charges paid balance
1
$0.00
$700.00 $0.00 $0.00 $0.00 $700.00
2 $700.00 $0.00 $14.00 $12.25 $1.75
$698.25
3 $698.25
$0.00 $13.97 $12.22 $1.75 $696.50
4 5696.50 $0.00 $13.93
$12.19 $1.74 $694.76
5 $694.76 $0.00 $13.90 $12.16 $1.74 $693.03
$693.03 $0.00 $13.86 $12.13 $1.73 $691.29
7 $691.29 $0.00 $13.83 $12.10 $1.73
5689.57
O
UN
About what percentage of Sonja's payments so far have gone to paying
interest?
O A. 10%
O B. 21%
O C. 23%
O D. 87%