Question

Marco's unpaid credit card balance is $4332.75. His APR is 18.6%.

What is his new balance if he made one new transaction for $432?

A. $4399.91
B. $4542.76
C. $4678.82
D. $4831.91

Answer 1

4,332.75+4,332.75×(0.186
÷12)+432
=4,831.91

Answer 2

Option D - $4831.91

Explanation:

Given : Marco's unpaid credit card balance is $4332.75. His APR is 18.6%.

He made one new transaction for $432.

To find : what is his new balance?

Solution :

We have given unpaid balance = $4332.75

and rate of interest= 18.6%=0.186

Now, we find the finance charge

Finance charge = Finance rate × Unpaid balance

Finance charge =
`(0.186)/(12) * 4332.75`

Finance charge = $67.157

New balance = Unpaid balance + finance charge + new transaction

New balance = $4332.75 +$67.157+ $432

New balance =$4831.91

Therefore, Option D is correct.