Question

You currently owe $4,631.00 of your credit card that charges an annual interest rate of 1.65%. You make $130.00 of new charges every month and make a payment of $200.00 every month. What will your credit card balance be in three months?

Answer 1

To calculate the credit card balance in three months, we need to consider interest, new charges, and payments. The balance after three months will be $3,660.15.

Step-by-step explanation:

To calculate your credit card balance in three months, we need to consider the interest accumulated and the new charges and payments made. Let's break down the calculations:

1. Starting balance = $4,631.00
2. Interest for three months = ($4,631.00 * 1.65% * 3/12) = $19.15
3. New charges for three months = ($130.00 * 3) = $390.00
4. Payments for three months = ($200.00 * 3) = $600.00

Now, we can calculate the balance:

Balance after three months = Starting balance + Interest - New charges - Payments = $4,631.00 + $19.15 - $390.00 - $600.00 = $3,660.15

Therefore, your credit card balance in three months will be $3,660.15.