Cara's unpaid credit card balance is $5392.39. Her APR is 13.2%, and she made one new transaction for $204. What is her new balance?
Mathematics · High School · Wed Jan 13 2021
Answered on
Given the statement:
Cara's unpaid credit card balance is $5392.39. Her APR is 13.2%, and she made one new transaction for $204.
Determine her new balance.
Solution:
In order to determine her new balance, we simply need to add her new transaction to her recent balance, then take the annual percentage rate of the added balance, and add it again.
= $5392 + $204
=$5596
Now we need to take the 13.2% of 5596, to do so, we must change the percentage first into decimal.In converting a percentage into decimal, divide the percentage by 100, hence in converting a decimal to percentage, multiply the percentage by 100.
= 13.2/100
=0.132
=($5596)(0.132)
=$738.67
=$5596 + 738.67
=$6334.67
Final answer:
Cara's new balance is $6334.67