Murray got a new credit card with an APR of 22% a month ago, and he just got his first credit card statement. He charged a watch for $47, a belt buckle for $19, and a pair of socks for $6. If his credit card charges interest on the previous monthly balance, how much should Murray pay now so that he doesn't have any interest charged to him on next month's statement?

Question

parker.goodbar · Answer

and can you explain it so i can understand it and get future problems correct

mathstudent55 · Answer

This is a new credit card that had no charges on it until these three charges were made.
Since the previous balance was $0, there is no interest charged from a previous balance.
This month, Murray has a balance of $47 + $19 + $6 = $72. If he does not pay this balance in full, then the credit card will charge him interest on the unpaid portion of his balance that carries over to next month. If he pays the balance in full, there will be no balance left, so he will pay no interest.