Question

Alan’s unpaid credit card balance was $3426.67. His APR is 16.8%. What is his new balance after he makes one new transaction for $235?

Answer 1

Answer:

The answer is $3709.64

Step-by-step explanation:

The unpaid credit card balance is = $3426.67

The APR is 16.8%

Monthly rate is = $\frac{16.8}{12} =1.4$ %

So, monthly interest on $3426.67 is $0.014\times3426.67=47.97$

Unpaid amount becomes = $3426.67+47.97=3474.64$

The amount of new transaction is = $235

So, new balance will be = $3474.64+235=3709.64$ dollars

The answer is $3709.64