Jackson has a previous balance of $767 on a credit card with a 16.5% APR compounded monthly. If he made a payment of $49 this month, what is the new balance on his credit card?
Jackson will have have the following amortization table after 1 monthly payment of $49:
Interest =$10.55, Principal =$38.45, Balance of Credit Card =$728.55.
+37084 Previous Balance x Monthly Interest + previous balance - payment =
767 x .1625 / 12 + 767 - 49 = $ 728.55 new balance
+37084 Sorry...that was just a typo (I got a '2' in the way)....but the calculation was made using the correct numbers.....
Sharp eye ! Thanx !
