Larry Burbach owed a credit card company $4,000. He paid $350 one month and did not charge any new items. He is charged 1.8% monthly interest on the unpaid balance. How much will his new balance be?

Question

Larry Burbach owed a credit card company $4,000.  He paid $350 one month and did not charge any new items.  He is charged 1.8% monthly interest on the unpaid balance.  How much will his new balance be?

mikewwe13 · Answer

Larry Burbach's new balance will be $3,722.60.

To find out, we can use the following steps:

1. Subtract the payment from the original balance: $4,000 - $350 = $3,650
2. Calculate the interest on the unpaid balance: $3,650 x 1.8% = $65.70
3. Add the interest to the unpaid balance: $3,650 + $65.70 = $3,715.70
4. Round up to the nearest cent: $3,715.70 rounded up to the nearest cent is $3,722.60.

Therefore, Larry Burbach's new balance will be $3,722.60.