Liam’s unpaid credit card balance is $1942.34. His APR is 16.8%.

What is his new balance if he made one new transaction for $280?
$1969.53
$2249.53
$2268.55
$2548.55

Question

Liam’s unpaid credit card balance is $1942.34. His APR is 16.8%.

What is his new balance if he made one new transaction for $280?
$1969.53		
$2249.53
$2268.55
$2548.55

jdoe0001 · Answer

hmmm
well.. I assume that's just simple interest rate
so he made a new transaction for $280, meaning he just spent $280 on something just now

so his unpaid balance will be, whatever was before PLUS the 280
so
assuming the previous balance included the APR already
then you just need to add to the new balance, the 280 and its APR of 16.8%
so whatever was before PLUS 280 + (16.8% of 280)