Question

On your last credit card statement, you had a previous balance of $98.14, payments of $10, a periodic rate of 1.34 percent, and new charges totaling $34.89 what is your new balance?

Answer 1

New balance
98.14−10+(88.14×(0.0134÷12)+34.89
=123.13 .....answer

Answer 2

The new balance is $123.128.

Explanation:

Given : On your last credit card statement, you had a previous balance of $98.14, payments of $10, a periodic rate of 1.34 percent, and new charges totaling $34.89

To find : What is the new balance?

Solution :

Previous balance = $98.14

Payment = $10

Unpaid balance = Previous balance - Payments

= $98.14 - $10

Unpaid balance = $88.14

We have given rate of interest= 1.34%=0.0134

Finance charge = Finance rate × Unpaid balance

Finance charge =
`(0.0134)/(12) * 88.14`

Finance charge = $0.098423

New balance = Unpaid balance + finance charge + new transaction

New balance = $88.14 +$0.098423+ $34.89

New balance =$123.128

Therefore, The new balance is $123.128.