Question

CAN SOMEONE PLEASE HELP ME!!!!

You owe $1,455.69 on a credit card at a 12.8% APR. You pay 15 days after the due date and the late fee is $35 making it 45 days of accrued interest. you pay $250. how much is your balance after the payment?

I DONT UNDERSTAND WHAT IT MEANS PLEASE HELP!!!!!!!!!!!!!!!!

Answer 1

$1,263.66

Explanation:

I just took the test, this is the correct and exact answer :)

Answer 2

The balance after the payment is $1263.84.

Explanation:

The formula for amount after compound interest is

`A=P(1+(r)/(n))^(t)`

Where, P is principal, r is rate of interest, n is number of time interest compounded in a period, number of periods.

According to the given information,

P=1455.69

r=0.128

n=365

t=45

Put these values in the above formula,

`A=1455.69(1+(0.128)/(365))^(45)`

`A\approx 1478.84`

The amount after compound interest is $1478.84. Add late fee chages $35 in this amount and subtract the payment of $250. So, the balance amount after payment is

`Balance=1478.84+35-250=1263.84`

Therefore the balance after the payment is $1263.84.