Question

Alexander has a previous balance of $982 on a credit card with a 19.2% APR compounded monthly. If he made a payment of $73 this month, what is the new balance on his credit card?
$909.00
$924.71
$1,097.54
$1,170.54

Answer 1

do you have the compound interest formula?

Answer 2

Yes the A=P(1+r/n)^nt

Answer 3

ok, so if the balance the previous month was 982, what would be the new balance THIS MONTH?

whatever that balance, he's paying 73 bucks THIS MONTH, so, whatever the balance - 73, is the "new" balance in the account

Answer 4

bear in mind that "n" or periods is "12", and t = 1, for 1 year, and "r" is in percent form, or 19.2/100

Answer 5

i got 1115.05

Answer 6

so, the new balance will be
$$
Amount = 982\pmatrix{1+\cfrac{0.0192}{12}}^{12}
$$

Answer 7

i came up with 1001.02

Answer 8

I got the same :/

Answer 9

hmmm idk whats going on

Answer 10

hehe

Answer 11

lol

Answer 12

you see the previous month balance, in a monthly compounding, becomes the new Principal
so, 982 is the principal to get the new balance

Answer 13

the rest is given, the period is 12, 12 months per year, 1st year, and the rate, which is 0.0192 or 19.2 %... wait, my shoot, my rate should be 19.2/100 = 0.192

Answer 14

so
$$
Amount = 982\pmatrix{1+\cfrac{0.192}{12}}^{12}
$$

Answer 15

i wasnt talking about the equation i was talking about the answers

Answer 16

yes, I know, I was referring to the same, but otherwise the values look good

Answer 17

ohh okay