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USPshnik [31]
3 years ago
12

Ryan's unpaid credit card balance was $1853.68. His APR is 24.9%. What is his new balance after he makes one new transaction for

$178?
Mathematics
1 answer:
nataly862011 [7]3 years ago
4 0

Answer:

  $2070.14

Step-by-step explanation:

Credit card terms vary, as do methods of computing interest and new balance. Here, we'll assume that no payment has been made (<em>in violation of the terms of the credit card</em>), and that the finance charge is only applied to the previous balance.

The finance charge is ...

  $1853.68 × 0.249 ÷ 12 = $38.46 . . . . . . . the monthly rate is 0.249÷12

Then the new balance will be the sum of the previous balance, finance charge, and new transaction(s):

  $1853.68 +38.46 + 178.00 = $2070.14

_____

<em>Comment on lack of payment</em>

Because no payment has been made, there may also be a late-payment charge added to the balance.

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