Jonathan’s credit card company determines his minimum monthly payment by taking 2.5% of any outstanding principal and adding it to interest charges on new monthly purchases. The credit card company charges an interest rate of 0.05623% per day. On November 12, Jonathan used his credit card to pay for the following business expenses: van repairs ($679), equipment maintenance ($475), office supplies ($147), and dinner with clients ($265).
(i) Assuming Jonathan had no new interest, determine his minimum payment due on December 1, his billing date. (ii) On December 1, instead of making his minimum payment, Jonathan makes a payment of $450. Assuming there are no additional charges or cash advances, determine Jonathan’s minimum payment on January 1.