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Thomas charged $2,400 on his credit card to buy furniture. the interest rate charged by the credit card company is 24.9%. after one month, the minimum payment on the debt is $50. how much will he owe after he makes the first payment

Verified Answer :

If the interest is compounded continuously: 
A = Pe^(r)(t) - 50 
A =2400e^(0.249)(1/12) - 50 = $2400.32

Answer:

The answer is $2399.80.

Step-by-step explanation:

The APR is = 24.9%  

So, per month rate is = @@MATH_TOKEN_0@@

After a month Thomas has to pay interest on $2400 at 2.075%  

= \(2400\times0.02075=49.80\) dollars

Now, the total amount due at month end is :

cost of furniture + interest on credit card  

= \(2400+49.80=2449.80\) dollars

As given, Thomas has to pay minimum $50.  

Therefore, after this 1st payment of $50, the amount he will owe is :

=\(2449.80-50=2399.8\) dollars

The answer is $2399.80.

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