Question

Liam's unpaid credit card balance is $1942.34his APR is 16.8% what is his new balance if he made one new transaction for $280

Answer 1

Answer: 2249.53

Explanation:

16.8% to a decimal is .168

.168/12= 0.014

0.014 x 1942.34= 27.19276

27.19276 + 1942.34 + 280= 2249.53276

Answer 2

Simplify first the given:

Balance = $1942

APR = 16.8%

New Transaction = $280

Since APR is annual percentage rate of charge

Let us first add the two transactions:

$1942 + $280 = $2,222 this is now the new remaining balance

We’ll get the 16.8% of the $2,222 and add it.

$2,222 + 16.8% = 2,595.296 = $2,595.30