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You owe $190 on your credit card. The minimum payment is $20.00 and the interest rate on the credit

card is 1.8%. What is the new balance?

User Noamyg
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1 Answer

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Answer: 173.42

Explanation:

Assuming that no other charges or payments were made, to find the new balance we need to first calculate the interest accrued on the current balance.

Interest for one period can be calculated using the formula:

interest = balance * rate

where balance is the current balance and rate is the interest rate per period.

The interest rate on the credit card is 1.8% per period. We need to convert this to a decimal by dividing by 100:

rate = 1.8% / 100 = 0.018

The current balance is $190. So the interest accrued for one period is:

interest = balance * rate = $190 * 0.018 = $3.42

Now we can find the new balance by adding the interest accrued to the current balance and then subtracting the minimum payment:

new balance = current balance + interest accrued - minimum payment

new balance = $190 + $3.42 - $20.00

new balance = $173.42

So the new balance on the credit card is $173.42.

User Paal Pedersen
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