Question

Alan’s unpaid credit card balance was $3426.67. His APR is 16.8%. What is his new balance after he makes one new transaction for $235?

Answer 1

The answer is $3709.64

Explanation:

The unpaid credit card balance is = $3426.67

The APR is 16.8%

Monthly rate is =
`(16.8)/(12) =1.4` %

So, monthly interest on $3426.67 is
`0.014*3426.67=47.97`

Unpaid amount becomes =
`3426.67+47.97=3474.64`

The amount of new transaction is = $235

So, new balance will be =
`3474.64+235=3709.64` dollars

The answer is $3709.64