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The minimum monthly payment for Fern's credit card is 2.5% of her balance or $40, whichever is higher. If Fern's balance at the end of her last billing cycle was $1950, what is her minimum monthly payment?


A.$48.75

B.$40.00

C.$8.75

D.$88.75

Verified Answer :

Jiggyfly

1950 * .025
48.75
A
When you do these problems, you must make sure you put this percent into decimal form before punching it into your calculator. 

Answer:

A. $48.75.

Step-by-step explanation:

We have been given that the minimum monthly payment for Fern's credit card is 2.5% of her balance or $40, whichever is higher.

First of all let us find 2.5% of $1950.

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Since the minimum monthly payment will be the higher amount among 2.5% of the balance or $40. As $48.75 is higher than $40, therefore, Fern's minimum monthly payment will be $48.75 and option A is the correct choice.