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HELP!!!!

  • 3 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

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  1. quarks16
    • 3 years ago
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    By payment, you mean that he paid off $49 of the $767 debt, right?

  2. tkhunny
    • 3 years ago
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    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
    • 3 years ago
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    ...16.5 IS monthly. And you forgot about that payment of $9.

  4. quarks16
    • 3 years ago
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    *$49

  5. quarks16
    • 3 years ago
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    I'd like to know if the $49 was before the interest was taken, or after the interest was taken.

  6. HELP!!!!
    • 3 years ago
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    so ally do you understand?

  7. ally7343
    • 3 years ago
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    yeah thanks.

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