Answer:
Option A - 2988.37
Explanation:
Given : Brads statement shows a previous balance of $2592.35 a payment of 75$ and new transactions totaling $432 . His APR is 18.6% .
To find : What is his new balance?
Solution :
Previous balance = $2592.35
Payments = $75
First we find the unpaid balance,
Unpaid balance = Previous balance - Payments
= $2592.35 - $75
Unpaid balance = $2517.35
Rate of interest= 18.6%=0.186
Now, we find the finance charge
Finance charge = Finance rate × Unpaid balance
Finance charge =
Finance charge = $39.02
New balance = Unpaid balance + finance charge + new transaction
New balance = $2517.35 +$39.02+ $432
New balance =$2988.37
Therefore, Option A is correct.