Question

Your credit card charges 16.5% interest on any unpaid balance. If your credit card balance forthe month is $650, how much will you be charged in interest and what will your new balancebe?

Answer 1

Solve for interest

`\begin{gathered} \text{convert the rate first from percentage to decimal} \\ 16.5\%\rightarrow0.165 \\ \\ \text{Then multiply it to the balance to get the interest} \\ \$650*0.165=\$107.25 \\ \\ \text{Therefore, the interest is \$107.25} \end{gathered}`

Solve for new balance.

`\begin{gathered} \text{Add the interest the the credit card balance to get the new balance.} \\ \$650+\$107.25=\$757.25 \\ \\ \text{Therefore, the new balance will be \$757.25} \end{gathered}`