Question

Michelle's credit card has a 0% introductory APR for 12 months and after that a 19.9% APR for purchases. Michelle makes purchases of $150 and plans to pay off her total balance before the grace period ends. Her card has an annual membership fee of $0. How much will Michelle pay to have a $0 balance on her credit card?

Answer 1

Michelle will need to pay $150 before the first 12 months. After 12 months is up her balance will have 19.9% added to the balance at that time. She needs to pay $12.50 a month for that first year.
$150 \div 12 = 12.50$
example: If she only paid $10 a month at the end of the year she would still owe $30 and will now owe $35.97 because of the APR%
$30 + 19.9\% = 35.97$