Assignment:
Eduardo has a balance of $3,265.96 on his credit card with an APR of 12.6%. His credit card requires a minimum monthly payment of 2% of the balance. If he transfers his balance to a credit card with an APR of 8.5% how of his first payment would be interest and how much would be applied to the principal?
Provide complete and step by step solution for the question and show calculations and use formulas.