Question

Haven't unpaid credit card balance is $2103.23 his APR is 14.4% what is his new balance if you made one new transaction for $390

Answer 1

Answer: 2518.47

Explanation:

New balance = unpaid balance+ new transactions+finance charge

Step 1.

Calculate the periodic rate= APR/12

14.4% to a decimal is .144

Periodic Rate: .144/12 = 0.012

Step 2.

Calculate the finance charge= Unpaid balance x periodic rate

Finance Charge: 2103.23 x 0.012= 25.23876

Step 3.

Calculate the new balance= unpaid balance+ new transactions+finance charge

New Balance: 2103.23+ 390 + 25.23876= 2518.46876

Answer 2

New balance
2,103.23+(2,103.23×0.144)+390
=2,796.095