You have a new credit card with a promotional 0% APR for a limited time. The card requires a minimum payment of 4% of the balance. You feel you can afford to pay no more than $150 each month. How much can you afford to charge?

Question

Quizplus · Accepted Answer

To find out how much you can afford to charge, you need to set up the equation based on the information that the minimum payment is 4% of the balance, and you can afford to pay no more than $150 each month. So, 0.04 * Balance = $150. Solving for Balance gives you Balance = $150 / 0.04 = $3750.

You Have a New Credit Card with a Promotional 0