A credit card company calculates its minimum monthly payment as 4% of the credit card balance or $20, whichever is greater. If Emile Fritz has a credit balance of $365.48, what is his minimum monthly payment (in dollars)? (See Example 4 in this section. Round your answer to the nearest cent.)

To calculate the minimum monthly payment, we need to follow the rule provided by the credit card company: it is either 4% of the credit card balance or $20, whichever is greater.

1. **Calculate 4% of the credit balance**:
   \[
   4\% \text{ of } 365.48 = \frac{4}{100} \times 365.48 = 0.04 \times 365.48 = 14.6192
   \]

2. **Compare the result with $20**:
   - 4% of the balance is **$14.62** (rounded to the nearest cent).
   - Since $20 is greater than $14.62, the minimum monthly payment is **$20**.

Thus, Emile Fritz's minimum monthly payment is **$20**.

Would you like more details on the steps or have any questions?

Here are 5 related questions you might consider:
1. How would the minimum payment change if the balance was higher than $500?
2. What if the company set the minimum payment to 5% of the balance?
3. How does making the minimum payment affect the overall interest on a credit card balance?
4. How would the minimum payment rule change if the threshold was $30 instead of $20?
5. What if Emile made a payment greater than the minimum? How would this impact his balance?

**Tip**: Always aim to pay more than the minimum payment to reduce interest charges on credit cards.

A credit card company calculates its minimum monthly payment as 4% of the credit card balance or $20, whichever is greater. If Emile Fritz has a credit balance of $365.48, what is his minimum monthly payment (in dollars)? (Round your answer to the nearest cent.)

Find out how to calculate the minimum monthly payment for a credit card balance of $365.48. Using 4% of the balance or $20, whichever is greater, this problem covers essential percentage and financial math concepts. Suitable for students in Grades 6-8.

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