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6 votes
Gavin’s unpaid credit card balance is $2103.23. His APR is 14.4%.

What is his new balance if he made one new transaction for $390?

OPTIONS:
A: $2016.10
B: $2128.47
C: $2518.47
D: $2796.10

2 Answers

7 votes

Answer: 2518.47

Explanation:

New balance = unpaid balance+ new transactions+finance charge

Step 1.

Calculate the periodic rate= APR/12

14.4% to a decimal is .144

Periodic Rate: .144/12 = 0.012

Step 2.

Calculate the finance charge= Unpaid balance x periodic rate

Finance Charge: 2103.23 x 0.012= 25.23876

Step 3.

Calculate the new balance= unpaid balance+ new transactions+finance charge

New Balance: 2103.23+ 390 + 25.23876= 2518.46876

User Ibaguio
by
3.5k points
4 votes

Answer:

c

Explanation:

XD

User DJDJ
by
3.9k points