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

Question

anonymous · Answer

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

tkhunny · Answer

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.

anonymous · Answer

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

anonymous · Answer

*$49

anonymous · Answer

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

help!!!! · Answer

so ally do you understand?

anonymous · Answer

yeah thanks.