You make an $800 purchase on a new credit card that has a monthly interest rate of 1.5%. You receive your first credit card statement in the mail and the balance is $800. You make a payment of $25. What is your new balance after the payment? $__
To calculate the new balance after the payment, you first need to calculate the interest accrued on the remaining balance.
Interest accrued = remaining balance * monthly interest rate
Interest accrued = ($800 - $25) * 0.015
Interest accrued = $775 * 0.015
Interest accrued = $11.625
Add the interest accrued to the remaining balance after the payment:
New balance = remaining balance + interest accrued
New balance = $775 + $11.625
New balance = $786.625
Thus, your new balance after the $25 payment is $786.625.
Wrong.
My apologies for the mistake. Let's recalculate the new balance after the $25 payment:
Remaining balance after the payment = $800 - $25
Remaining balance after the payment = $775
Now, let's calculate the interest accrued on the remaining balance:
Interest accrued = $775 * 0.015
Interest accrued = $11.625
Add the interest accrued to the remaining balance after the payment:
New balance = remaining balance + interest accrued
New balance = $775 + $11.625
New balance = $786.625
Therefore, your new balance after the $25 payment is $786.63.
No numbers with .
I apologize for the error in my previous responses. Let's calculate the new balance without decimal numbers:
Remaining balance after the payment = $800 - $25
Remaining balance after the payment = $775
Now, let's calculate the interest accrued on the remaining balance:
Interest accrued = $775 * 0.015
Interest accrued = $11.625
Add the interest accrued to the remaining balance after the payment:
New balance = remaining balance + interest accrued
New balance = $775 + $12
New balance = $787
Therefore, your new balance after the $25 payment is $787.