Suppose you have a credit card balance of $500 that you were unable to pay off. During the current month you purchase another $250 worth of products. You made a payment during the grace period of $300. Assuming your retail credit card company charges an annual interest rate of 22%, compute your new balance.

Question

Quizplus · Accepted Answer

The new balance is $453.67. The interest for the month is $500 x 22% / 12 = $9.17. The new balance is $500 + $250 - $300 + $9.17 = $453.67.

Suppose You Have a Credit Card Balance of $500 That