Question

Rae's unpaid credit card balance was $522. Her APR is 18.9%. What is her newbalance after she makes one new transaction for $306? Round answer to thehundredths place. If answer doesn't have a hundredths place then include a zero sothat it does.

Answer 1

Given: The following details

`\begin{gathered} P_{\text{revious balance}}=522 \\ T_{\text{ransaction}}=306 \\ \text{APR}=18.9\% \end{gathered}`

To Determine: The new balance

The new balance can be calculated by the formula below

`N_{ew\text{ balance}}=P_{revious\text{ balance}}-T_(ransaction)+F_{inance\text{ charge}}`
`\begin{gathered} F_{\text{nance charge}}=APR*(P_{revious\text{ balance}}-T_(ransaction)) \\ F_{\text{nance charge}}=0.189*(522-306)=40.82 \end{gathered}`
`\begin{gathered} N_{ew\text{ balance}}=522-306+40.824 \\ N_{ew\text{ balance}}=256.82 \end{gathered}`

Hence, the new balance is $256.82