You owe $1,455.69 on a credit card at a 12.8% APR. You pay 15 days after the due date and the late fee is $35.00, making it 45 days of accrued interest. You pay $250.00. How much is your balance after the payment?
First, calculate the interest accrued on the $1,455.69 balance over 45 days:
Daily interest rate = (12.8% / 365 days) = 0.00035
Accrued interest = $1,455.69 * 0.00035 * 45 = $22.59
Next, add the late fee of $35.00 to the total amount owed:
Total amount owed = $1,455.69 + $22.59 + $35.00 = $1,513.28
Now subtract the $250.00 payment to find the new balance:
New balance = $1,513.28 - $250.00 = $1,263.28
After making the $250.00 payment, your new balance is $1,263.28.