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11 January, 13:09

Armando has a previous balance of $1,537 on a credit card with a 23.4% APR compounded monthly. If he made a payment of $84 this month, what is the new balance on his credit card?

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  1. 11 January, 13:16
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    When you don't pay off your credit card then you pay the previous months interest - ouch! The interest is Prt

    Current balance = Previous balance + Interest - payment

    Current balance = 1537 + (1537) (23.4/100) (1/12) - (84)

    Current balance = $1482.97
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