Bonnie's credit card has an APR of 22.99% and requires a monthly payment of at least 9% of the balance.  Calculate Bonnie's starting balance for next month if she had a carryover balance of $942.32 at the beginning of this month and only pays the minimum payment amount required.  
 

To calculate Bonnie's starting balance for next month, we'll break it down step by step:

### Step 1: Calculate the Monthly Interest Rate
The Annual Percentage Rate (APR) is 22.99%, so the monthly interest rate is:

\[
\text{Monthly Interest Rate} = \frac{22.99\%}{12} = \frac{22.99}{12} = 1.916\%
\]

### Step 2: Calculate the Minimum Payment
Bonnie's minimum payment is 9% of her carryover balance. Given that her current balance is $942.32, the minimum payment is:

\[
\text{Minimum Payment} = 9\% \times 942.32 = 0.09 \times 942.32 = 84.81
\]

### Step 3: Calculate the Remaining Balance After Payment
The remaining balance after making the minimum payment is:

\[
\text{Remaining Balance} = 942.32 - 84.81 = 857.51
\]

### Step 4: Calculate the Interest Charged for Next Month
Now, apply the monthly interest rate of 1.916% to the remaining balance:

\[
\text{Interest} = 1.916\% \times 857.51 = 0.01916 \times 857.51 = 16.44
\]

### Step 5: Calculate the Starting Balance for Next Month
The starting balance for next month is the remaining balance plus the interest charged:

\[
\text{Starting Balance} = 857.51 + 16.44 = 873.95
\]

### Conclusion:
Bonnie's starting balance for next month will be **$873.95**.

Would you like any further explanation on these steps?

### Related Questions:
1. How would the balance change if Bonnie paid more than the minimum amount?
2. What would the balance be if the APR was 19.99% instead of 22.99%?
3. How long would it take Bonnie to pay off her balance if she only made minimum payments?
4. How does compounding monthly interest affect long-term credit card balances?
5. What is the total interest paid over a year if Bonnie makes only minimum payments?

#### Tip: Paying more than the minimum payment can significantly reduce the amount of interest paid over time!

Bonnie's credit card has an APR of 22.99% and requires a monthly payment of at least 9% of the balance. Calculate Bonnie's starting balance for next month if she had a carryover balance of $942.32 at the beginning of this month and only pays the minimum payment amount required.

Learn how to calculate the next month's credit card balance for Bonnie, who has an APR of 22.99% and makes the minimum payment of 9%. Using step-by-step interest and balance calculations, this example is suitable for students in Grades 9-12.

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