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
balance
$0.00 $700.00
50.00 50.00 $700.00
$700.00 50.00 $14.00 S12.25 $1.75
S698 25
$698.25 $0.00 $13.97 $12.22 $1.75
$696.50
S696.50 $0.00 $13.93 $12.19 $1.74
S694.76
$694.76 $0.00 $13.90 $12 16
$1.74
$693.03
S693.03 $0.00 $13.86 $12.13
$1.73 $691 29
S691.29 $0.00 $13.83 $12.10 $1.73 5689.57
paid
50.00
About what percentage of Sonja's payments so far have gone to paying
interest?
A. 23%
B. 21%
C. 10%
D. 87%