Dawn's credit card has an APR of 15%, 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 paid balance
1
$0.00 $1700.00 $0.00
$0.00
$0.00 $1700.00
2 $1700.00 $0.00
$34.00
$21.25 $12.75 $1687.25
3 $1687.25 $0.00 $33.75 $21.09 $12.65 $1674.60
4 $1674.60 $0.00 $33 49 $20.93 $12.56 $1662 04
5 $1662.04 $0.00 $33 24 $20.78 $12.47 $1649.57
$1649.57 $0.00
$32.99 $20 62 $12.37 $1637 20
7 $1637.20 $0.00 S32.74 $20.46 $ 12.28 $1624.92
What is the total amount that Dawn has paid in interest over the 7 months?