Question

Jackson has a previous balance of $767 on a credit card with a 16.5% APR compounded monthly. If he made a payment of $49 this month, what is the new balance on his credit card?

Answer 1

@Hero

Answer 2

@gregalex how far have you gotten with trying to solve this one?

Answer 3

not very

Answer 4

Do you have the formula with you?

Answer 5

If so, would you mind posting it here?

Answer 6

Are you still here @gregalex ?

Answer 7

I'm asking whether or not you know the formula. If you don't know the formula it's okay.

Answer 8

no, i don't

Answer 9

The formula for compound interest is \(A = P\left(1 + \dfrac{r}{n}\right)^{nt}\) where \(A\) is the current account balance, \(P\) is the previous balance, \(r\) is the APR, \(n\) is number of times compounded , and $t$ is the length of time of the account, which in this case we can assume to be one year.

Answer 10

So, in other words:
\(P = 767, r = 0.165, n = 12, t = 1\). Insert those values to get the value of \(A\)

Answer 11

After finding \(A\) subtract the $49 he already paid to get the new balance.

Answer 12

Thank you!

Answer 13

You're welcome