Question

The beginning balance of a credit card account is $500. The monthly interest rate is 0.012. If a payment of $100 is made on the last day of the month, what is the ending balance?
A. $404.80
B. $406.00
C. $504.80
D. $506.00

Answer 1

I think its 1.012(500 - 100) = 400* 1.012 = 404.80 dollars

Answer 2

Hi there:)

Since the interest rate is 0.012 per month
So the interest charge
500×0.012=6
The ending balance is
500+6−100=406

Hope it helps