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

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

anonymous · Answer

@ganeshie8

ganeshie8 · Answer

use compound interest formula to calculate the balance
then subtract the payment made

anonymous · Answer

whats the formula?

ganeshie8 · Answer

$A =  P\left(1 + \frac{r}{n}\right)$

anonymous · Answer

so does
p = 982
r = 19.2
n = ?

ganeshie8 · Answer

P = starting principal = 982
r = interest rate = 0.192
n = number of times compounding occurs = 12

anonymous · Answer

dang, i got 997. thats not right

anonymous · Answer

@ganeshie8

ganeshie8 · Answer

thats right,
just subtract the monthly payment

ganeshie8 · Answer

http://www.wolframalpha.com/input/?i=982%281%2B0.192%2F12%29+-+73

tkhunny · Answer

Insufficient information.  WHEN was the payment?