Math

Your credit card has a balance of $1000 and an interest rate of 21%. Each month you make the minimum requirement of $20. During January 10 through February 9 billing period you pay the minimum required payment on january 25th. find the average daily balance, finance charge, and new balance.

I found:
average daily balance=989.68
finance charge=17.65
and I know these are right because the answers were in the back.

but I don't know how to get the new balance. The back of my book says 997.65, and I have no idea how they got that. So how do I go about solving for the new balance?

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  1. the new balance is just

    old balance + finance charge - payment.

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    posted by Steve

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