Question

Check My Work You have a current credit card balance of $450.00, which you are paying off so you can close the account No new purchases have been added this month, and interest is computed on the average daily balance method. The APR is 18%, and the minimum payment is 39. If you make the minimum payment this month, what will the new balance be on the​

Answer 1

$417.16.

Step-by-step explanation:

Since I have a current credit card balance of $ 450.00, which I am paying off so I can close the account and no new purchases have been added this month, and interest is computed on the average daily balance method with an APR of 18%, and a minimum payment of $ 39, if I make the minimum payment this month, the new balance is determined as follows:

(450 - 39) x (1 + 0.18 / 12) = X

411 x 1.015 = X

417.16 = X

Therefore, the new balance would be of $417.16.