Question

Brads statement shows a previous balance of $2592.35 a payment of 75$ and new transactions totaling $432 . His APR is 18.6% . What is his new balance?
$2988.37


$3064.53


$3140.93


$3246.43

Answer 1

Answer:

Option A - 2988.37

Step-by-step explanation:

Given : Brads statement shows a previous balance of $2592.35 a payment of 75$ and new transactions totaling $432 . His APR is 18.6% .

To find :  What is his new balance?  

Solution :

Previous balance = $2592.35

Payments = $75

First we find the unpaid balance,

Unpaid balance = Previous balance - Payments  

                           = $2592.35 - $75

Unpaid balance  = $2517.35

Rate of interest= 18.6%=0.186

Now, we find the finance charge

Finance charge = Finance rate × Unpaid balance

Finance charge = $\frac{0.186}{12}\times 2517.35=39.018925$

Finance charge = $39.02

New balance =  Unpaid balance + finance charge + new transaction

New balance =  $2517.35 +$39.02+ $432

New balance =$2988.37

Therefore, Option A is correct.