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Zain's current credit card balance is $9,160.00 with a minimum payment of $325.00. Over the next month he spends $1,098.00. If the APR is 18.99% (billed monthly), what will the new balance be, including interest?

User Razmig
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Answer: To find the new balance including interest, we need to take into account the interest charged on the current balance and the new purchase.

First, let's calculate the interest charged on the current balance. The monthly interest rate is 18.99% / 12 = 1.5825%.

The interest charged on the current balance is therefore:

interest on current balance = 0.015825 * 9160.00 = 144.98

So the total balance including interest for the current month is:

current balance including interest = 9160.00 + 144.98 = 9304.98

Next, let's calculate the interest charged on the new purchase of $1,098.00. The interest charged on the new purchase is:

interest on new purchase = 0.015825 * 1098.00 = 17.39

So the total balance including interest for the new purchase is:

new balance including interest = 1098.00 + 17.39 = 1115.39

Finally, we add the current balance including interest and the new balance including interest to get the total balance including interest:

total balance including interest = current balance including interest + new balance including interest

total balance including interest = 9304.98 + 1115.39

total balance including interest = 10420.37

Therefore, the new balance including interest is $10,420.37.

Explanation:

User Volcano
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