Solve the problem.
-On the August 28 billing date, Marcus had a balance due of $826.16 on his credit card. The Transactions during the following month were: $$\begin{array} { l l r }
\text { August 30 } & \text { Payment } & \$ 111.39 \
\text { September 2 } & \text { Charge: camera } & \$ 390.39 \
\text { September 8 } & \text { Charge: bicycle } & \$ 185.38 \
\text { September 21 } & \text { Charge: shoes } & \$ 66.81
\end{array}$$
The interest rate on the card is 1.5% per month. Using the previous balance method, find the new Balance on September 28.
A) $1481.13
B) $1487.60
C) $727.16
D) $1369.74

Question

Solve the problem.
-On the August 28 billing date, Marcus had a balance due of $826.16 on his credit card. The Transactions during the following month were: $$\begin{array} { l l r } 
\text { August 30 } & \text { Payment } & \$ 111.39 \
\text { September 2 } & \text { Charge: camera } & \$ 390.39 \
\text { September 8 } & \text { Charge: bicycle } & \$ 185.38 \
\text { September 21 } & \text { Charge: shoes } & \$ 66.81
\end{array}$$
The interest rate on the card is 1.5% per month. Using the previous balance method, find the new Balance on September 28.
A) $1481.13
B) $1487.60
C) $727.16
D) $1369.74

Quizplus · Accepted Answer

First, calculate the interest on the initial balance: $826.16 * 0.015 = $12.39. Then, subtract the payment and add the charges: $826.16 - $111.39 + $390.39 + $185.38 + $66.81 = $1357.35. Finally, add the interest to get the new balance: $1357.35 + $12.39 = $1369.74.

Solve the Problem The Interest Rate on the Card Is 1