lrene has a previous balance of $987 on a credit card with a 17.3% APR compounded monthly. If she made a payment of $50 this month, what is the new balance on her credit card?

$1,157.75

$1,107.75

$937.00

$951.23

Question

lrene has a previous balance of $987 on a credit card with a 17.3% APR compounded monthly. If she made a payment of $50 this month, what is the new balance on her credit card?

$1,157.75

 $1,107.75

 $937.00

 $951.23

tkhunny · Answer

When did she make the payment?

Beginning: (987 - 50) + (987 - 50)*(0.173/12) = 937 + 13.51 = 950.51
End: 987 + 987*(0.173/12) - 50 = 937 + 14.23 = 951.23
Some other time?

anonymous · Answer

thank you :)

tkhunny · Answer

Careful with these.  Make your questioner specify when things happen.  Don't let them make you guess.  I may have time on an exam to work all the problem three times, but I'm guessing most humans, when first seeing the material, don't have that kind of time.

anonymous · Answer

All right, I'll make sure of that. I was confused on other questions like that, too. For example, one would ask something that had multiple answers (not a math question, but something pertaining to finances). Thank you!