A credit card calculates interest using the average daily balance method. The card charges 19.0% annual interest rate on the average daily balance. The following transactions occurred during the June 1 – June 30 billing period.

The balance at the end of June was $1,910.27, and the interest to be paid on July 1 is $28.20. Find the balance due on July 1. Round to the nearest cent as needed.

Question

A credit card calculates interest using the average daily balance method. The card charges 19.0% annual interest rate on the average daily balance. The following transactions occurred during the June 1 – June 30 billing period.

The balance at the end of June was $1,910.27, and the interest to be paid on July 1 is $28.20. Find the balance due on July 1. Round to the nearest cent as needed.

anonymous · Answer

Do you just add 1,910.27 and $28.20?

anonymous · Answer

or subtract I mean

anonymous · Answer

I think just add, unless I'm missing something.. There's a 1910.27 balance + 19% APR for one month = about 28$, so total charge is previous balance + interest.

anonymous · Answer

the previous balance was 2653.49 so do I multiply that by .19
Im confused

anonymous · Answer

@CliffSedge