Question

Juan has a previous balance of $923 on a credit card with a 25.9% APR compounded monthly. If he made a payment of $107 this month, what is the new balance on his credit card?

Answer 1

211.344

Explanation:

923 - 107 = 816

25.9% of 816 = 211.344

or just 211.3

Answer 2

$835.92

Explanation:

923 + 923(25.9%/12) - 107.

923 + 923(0.021583) - 107.

923 + 19.92 - 107.

942.92 - 107.

835.92.