Question

Gavin’s unpaid credit card balance is $2103.23. His APR is 14.4%.

What is his new balance if he made one new transaction for $390?

Answer 1

Answer: $2518.47

14.4℅ 0.144

2103.23×0.144÷12= 25.23876

25.23876 + 2103.23 + 390

Answer: $2518.47

Answer 2

APR stands for Annual Percentage Rate, we need to know this before we proceed with the calculations. Gavin's unpaid balance is $2103.23 and new credit amount is $390. New total credit amount is $2493.23, multiplying this with APR value which is 0.144 plus the total credit amount equals to the total balance. Hence, calculation is shown below:
Total balance = (($2103.23+$390)*0.144) + ($2103.23+$390) =$2852.255
Gavin needs to pay the total credit balance amounting to $2852.255.