## HELP!!!! 2 years ago 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? (1 point) \$718.00\$728.55\$844.56\$893.56

1. quarks16

By payment, you mean that he paid off \$49 of the \$767 debt, right?

2. tkhunny

As with ALL such problems, the correct answer depends on the EXACT methodology for calculating interest charges. There are MANY different ways to do that. I would guess that the answer is the method that I never have seen actually in practice. 16.5% = 0.165 -- Annual Interest Rate 0.165 / 12 = 0.01375 -- Monthly Interest Rate 767.00 * 0.01375 = 10.55 -- Interest Charges for the Month. Add and subtract the pieces and you should be done.

3. quarks16

...16.5 IS monthly. And you forgot about that payment of \$9.

4. quarks16

*\$49

5. quarks16

I'd like to know if the \$49 was before the interest was taken, or after the interest was taken.

6. HELP!!!!

so ally do you understand?

7. ally7343

yeah thanks.