Harry’s credit card company deter-mines his minimum monthly payment by adding all new interest to 2.5% of the outstanding principal. The credit card company charges an interest rate of 0.03164% per day. On August 21, while on vacation, Harry used his credit card to pay for the following expenses: airfare ($359), car rental ($273), hotel ($653), meals ($315), and surfboard rental ($225).

(a) Assuming Harry had no new interest, determine Harry’s minimum payment due on September 1, his billing date.

(b) On September 1, instead of making his minimum payment, Harry makes a payment of $750. Assuming there are no additional charges or cash advances, determine Harry’s minimum payment on October 1.