Question

Brads statement shows a previous balance of $2592.35, a payment of $75, and new transactions totaling $432. His APR 18.6%. What is his new balance?
(A) 2988.37
(B) 3064.53
(C) 3140.93
(D) 3246.43

Answer 1

Answer:

$2988.37

Step-by-step explanation:

Subtract the payment from the previous balance.  Convert the APR to a decimal.  Multiply the unpaid balance by this decimal.  Divide the product by 12 to calculate the interest added for this month.  Add the new amount owed, the interest, and the new transaction to determine the new balance.