Question

At the beginning of March, you have an upaid balance of $567. 98 on your credit card. You make an additional $439. 69 in purchases and make a payment of $450. If the monthly interest rate is 1. 8%, what is the balance on your credit card at the beginning of April?

Answer 1

At the beginning of April, your balance on your credit card would be $556.88. This is calculated using the following formula: Balance at the beginning of April = Previous Balance + Purchases - Payment + Interest = 567.98 + 439.69 - 450 + (567.98 + 439.69)*0.018 = 567.98 + 439.69 - 450 + 10.88 = 556.88