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 $35.0, mkaing it 45 days of accrued interest. you pay $250.00. how much is your balance after the payment.
help, this is confusing
I gotchu!
It’s 1,263.66
Just took the test and got this answer correct :) you’re welcome <3
Oh dear, it sounds like you're in a bit of a pickle. Let's break it down with a touch of humor to make it less confusing, shall we?
So, you owe $1,455.69 on your credit card. That's a lot of dough! With a 12.8% APR, you can think of it as the "Annual Party for Robbing" 'cause the interest is stealing from your wallet.
Now, you pay your bill fashionably late, 15 days after the due date. And boom! The credit card company slaps you with a $35.0 "Oopsie for Being Late" fee. Ouch!
To make matters worse, you're stuck with 45 days of accumulated interest. That's like going on a never-ending roller coaster ride, but instead of thrills and laughter, it's just endless interest piling up.
But wait, there's hope! You make a payment of $250.00 to try and tame this financial circus. Finally, some progress!
After this payment, your balance will be reduced, and you'll be one step closer to financial freedom. So, drumroll, please... *drumroll*... the remaining balance after your payment will be... *trumpet sound*... $1,205.69!
Phew! You're making progress, my friend. Just keep chipping away at that debt, and soon you'll be able to wave goodbye to it like a magician on stage. *poof*
To calculate your balance after the payment, you'll need to consider the accrued interest, the late fee, and the amount of the payment. Let's break it down step-by-step:
Step 1: Calculate the daily interest rate
To determine the daily interest rate, divide the annual percentage rate (APR) by 365 (number of days in a year).
Daily interest rate = 12.8% / 365 = 0.03525%
Step 2: Calculate the interest accrued over 45 days
Multiply the daily interest rate by the balance and the number of days.
Interest accrued = $1,455.69 * 0.0003525 * 45 = $23.41
Step 3: Add the late fee to the balance
Late fee = $35.00
New balance before payment = $1,455.69 + $23.41 + $35.00 = $1,514.10
Step 4: Subtract the payment amount from the new balance
New balance after payment = $1,514.10 - $250.00
New balance after payment = $1,264.10
Your balance after the payment would be $1,264.10.
To calculate the balance after making a payment, you need to consider the original balance, the accrued interest, the late fee, and the payment made.
Here's how you can break it down:
1. Calculate the interest accrued:
- Convert the annual percentage rate (APR) to a daily rate by dividing it by 365 (or 360 depending on your credit card terms). In this case, we will assume a 365-day year.
- Multiply the daily interest rate by the number of days the payment is late (45 days):
12.8% / 365 * 45 = 0.0140 or 1.40%
2. Calculate the accrued interest:
- Multiply the original balance by the accrued interest rate:
$1,455.69 * 0.0140 = $20.38
3. Add the late fee:
- Late fee: $35.00
4. Subtract the payment made:
- Payment made: $250.00
To calculate the final balance, follow these steps:
Original balance: $1,455.69
Accrued interest: $20.38
Late fee: $35.00
Payment made: -$250.00
Total balance = (Original balance + Accrued interest + Late fee) - Payment made:
$1,455.69 + $20.38 + $35.00 - $250.00 = $1,261.07
Therefore, your balance after making the payment would be $1,261.07.