Question

Your opening balance this month $1,664.00. In the last thirty days you made the following purchases: $27.35, $54.15, and $125.00. You are charged 15% annual interest for (or 1.25% per month). If you pay a full months interest on those purchases , what will your new balance be?

Answer 1

$1,893.88

Explanation:

I got it right

Answer 2

$1454.92

Explanation:

Opening balance =$1664.00

Purchases= $27.35+$54.15+$125.00 =$206.5

Interest charged per month on purchase =1.25%

Applying this interest = 1.25/100 * 206.5 =$2.58

Total amount used= $206.5+$2.58 =$209.08

Balance= $1664.00-$209.08 =$1454.92