Question

Jackson has a previous balance of $767 on a credit card with a 16.5% APR compounded monthly. If he made a payment of $49 this month, what is the new balance on his credit card?

Answer 1

Answer:

= $ 728.55  new balance

Step-by-step explanation:

Jackson has a previous balance of $767 on a credit card with a 16.5% APR compounded monthly. If he made a payment of $49 this month, what is the new balance on his credit card?

his APR per month will be 16.5% divided by 12 months, since 12 months makes a year

 

 Previous Balance  767                      

Monthly Interest=      .165 / 12    =       0.0135    

monthly balance = 767                          

     payment  = 49  

previous balance*monthly interest*previous balance-payment

767*0.0135*767-79

= $ 728.55  new balance

Answer 2

Previous = 767 subtract pmt of 49 = amount to pay interest on, A

new balance = A(1 + rt)^p*t   r = interest rate for year as decimal
t = time in years p = amount of times for the year interest is added