Lucy has an unpaid balance of $700 on her credit card. The credit card company requires a minimum payment of 3% and charges an annual interest rate of 19%.

Calculate Lucy's minimum payment, the amount of interest paid that month, and her unpaid balance. Round each to the nearest cent.

The minimum payment is $

The amount of interest paid is $

The unpaid balance is $

To calculate Lucy's minimum payment, interest paid, and unpaid balance, we can follow these steps:

### 1. Minimum Payment
The minimum payment is 3% of the unpaid balance.

\[
\text{Minimum Payment} = 0.03 \times 700 = 21
\]

So, the minimum payment is **$21.00**.

### 2. Interest Paid
The interest paid is based on the annual interest rate of 19%. To find the monthly interest rate, divide the annual rate by 12:

\[
\text{Monthly Interest Rate} = \frac{19}{12} = 1.5833\% \text{ per month}
\]

Next, calculate the interest on the unpaid balance of $700:

\[
\text{Interest Paid} = 0.015833 \times 700 = 11.08
\]

So, the interest paid is **$11.08**.

### 3. Unpaid Balance
After Lucy makes her minimum payment, the new unpaid balance will be:

\[
\text{New Unpaid Balance} = 700 + 11.08 - 21 = 690.08
\]

So, the unpaid balance is **$690.08**.

### Summary:
- The minimum payment is **$21.00**.
- The amount of interest paid is **$11.08**.
- The unpaid balance is **$690.08**.

Would you like any more details on this?  

Here are 5 related questions to think about:
1. How would the unpaid balance change if Lucy made a payment higher than the minimum?
2. What would the total interest paid over a year be if only the minimum payments are made?
3. How would the monthly interest be affected if the annual interest rate were lower?
4. What happens to the balance if Lucy doesn't make the minimum payment?
5. What if Lucy had a different balance on her credit card — how would that affect the calculations?

**Tip:** Paying more than the minimum helps reduce overall interest and pay off the debt faster.

Lucy has an unpaid balance of $700 on her credit card. The credit card company requires a minimum payment of 3% and charges an annual interest rate of 19%. Calculate Lucy's minimum payment, the amount of interest paid that month, and her unpaid balance. Round each to the nearest cent.

Learn how to calculate the minimum payment, interest paid, and unpaid balance for Lucy's $700 credit card debt. This problem uses percentage and simple interest concepts with an annual interest rate of 19%, perfect for students in Grades 10-12.

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