You have a credit card balance of $53.00 from the previous month. You have $172.45 in new purchases and you made a payment of $5

Question

3 years ago

9

You have a credit card balance of $53.00 from the previous month. You have $172.45 in new purchases and you made a payment of $5

0.00. Your APR is 8.75%. According to the Previous Balance method, what amount would you use to calculate the interest for this month?

Business

1 answer:

Misha Larkins [42] · Answer 1 · 2022-06-16T15:34:20+03:00

Answer:

$50

Explanation:

As per previous balance method the Interest is charged based on the opening balance of the Credit Card.

As $50 was the balance from previous month and opening balance for this month, Hence $50 would be the amount we would use to calculate the interest for this month.