Question

Brian's statement shows a previous balance of $4248.64, a payment of $250, and new transactions totaling $326.

What is his new balance if his APR is 12.3%

A. 3998.64
B. 4365.63
C. 4368.97
D. 5064.47

Answer 1

4,248.64−250
=3,998.64

3,998.64+3,998.64×(0.123
÷12)+326
=4,365.63

Answer 2

Option B- The new balance is $4365.63

Explanation:

Given : Brian's statement shows a previous balance of $4248.64, a payment of $250, and new transactions totaling $326. His APR is 12.3% .

To find : What is his new balance?

Solution :

Previous balance = $4248.64

Payments = $250

First we find the unpaid balance,

Unpaid balance = Previous balance - Payments

= $4248.64 - $250

Unpaid balance = $3998.64

Rate of interest= 12.3%=0.123

Now, we find the finance charge

Finance charge = Finance rate × Unpaid balance

Finance charge =
`(0.123)/(12)*3998.64=40.986`

Finance charge = $40.986

New balance = Unpaid balance + finance charge + new transaction

New balance = $3998.64 +$40.986+ $326

New balance =$4365.626

Therefore, Option B is correct.

The new balance is $4365.63