3.
You have $2,675.00 on a credit card with a 15.75% APR. You miss your minimum payment and there is a late fee of $29.00. How much is your balance at the beginning of the second month? (1 point)

$2,814.31
$2,739.11
$3,125.31
$2,710.11

Question

3.  
You have $2,675.00 on a credit card with a 15.75% APR. You miss your minimum payment and there is a late fee of $29.00. How much is your balance at the beginning of the second month?  (1 point)

    $2,814.31
    $2,739.11
    $3,125.31
    $2,710.11

dumbcow · Answer

the new balance = old balance + interest + late fee

interest is calculated monthly using avg daily balance

anonymous · Answer

@perl 3125.31?

anonymous · Answer

@dumbcow

dumbcow · Answer

formula perl posted will work

perl · Answer

2675 ( 1 + .1575/12) ^ ( 12 * 1/12)  + 29

perl · Answer

time is in years, and it is 1/12 of a year

perl · Answer

A = P ( 1 + r/n) ^(n*t)

perl · Answer

this website says you can just multiply the interest without taking compounding into account https://answers.yahoo.com/question/index?qid=20120503133259AAixwzf

dumbcow · Answer

to be more exact using daily compounding but its multiple choice so difference wont matter

perl · Answer

how long is a month in daily compounding (and how long is a year)

perl · Answer

360 days in a 'bank year' and 30 days in a 'bank month'

perl · Answer

using daily compounding you'll get a bit more than using monthly compounding,

perl · Answer

@Buttercup98  you better do the math again

anonymous · Answer

I already have the answer. But Thanks

perl · Answer

did you get 2739.1

dumbcow · Answer

Formula is correct   ..... 2739.1 is correct answer after adding late fee

dumbcow · Answer

$$2675 (1 + \frac{.1575}{360})^{30} + 29 = 2739.10$$