Question

The balance on Maria’s credit card on May 10, the billing date, was $3,198.23. She sent in a $1,000 payment, which was posted on May 13, and made no other transactions during the billing cycle. Assuming the APR on the card is 7.9%,

Answer 1

To calculate the new balance on Maria's credit card after a $1,000 payment and no other transactions during the billing cycle, subtract the payment from the previous balance and add the interest accrued.

Step-by-step explanation:

To calculate the new balance on Maria's credit card after the payment, we need to subtract the payment from the previous balance and then add the interest accrued during the billing cycle. Firstly, subtract the $1,000 payment from the initial balance of $3,198.23 to get $2,198.23. Next, find the interest accrued by multiplying the new balance by the monthly interest rate (APR divided by 12) and adding it to the new balance. Finally, round the final balance to the nearest cent. The new balance after the payment and interest will be $2,199.10.