You have maxed out your credit card and owe $5,500. It's interest rate is 21%. Each month, you make the minimum required payment of $35.
a. During the September 20 through October 19 billing period, you pay the minimum required payment on October 1. Find the average daily balance, the finance charge, and the new balance. (The new balance includes the finance charge).
b. During the October 20 through November 19 billing period, you pay the minimum required payment on November 11. Find the average daily balance, the finance charge, and the new balance.
c. During the November 20 through December 19 billing period, you pay the minimum required payment on November 30. Find the average daily balance, the finance charge, and the new balance.
d. Discuss the impact of making the minimum required payment, both on yourself and the credit card issuer.