6.10 Exercise 13

The FYA credit card company has the following minimum payment policy. For balances over $1,000, the minimum payment is 2.5% of the balance due plus fees, but not interest. For balances between $500.00 and $999.99, the minimum payment is $50.00. For balances $499.99 and under, the minimum payment is $25.00 or the balance due, whichever is smaller.

In the following, calculate the minimum payment due given the credit card minimum payment policy, the balance due and fees charged.

1. Balance due is $1,309.00, no fees
2. Balance due is $265.50, $35 in fees
3. Balance due is $784.90, no fees