You have a credit card with a balance of $1,187.92 and the interest is 12.25% APR. A late fee of $30.00 is charged for payments after the due date. You missed your payment due date, but plan to make a payment of $125.00 on the next due date. What will be the new principle after that payment?

a) $1,242.39

b) $1,105.05

c) $1,117.61

d) $1,062.92

Question

Mathematics

Alessandra Reilly

6 December, 02:32

You have a credit card with a balance of $1,187.92 and the interest is 12.25% APR. A late fee of $30.00 is charged for payments after the due date. You missed your payment due date, but plan to make a payment of $125.00 on the next due date. What will be the new principle after that payment?

a) $1,242.39

b) $1,105.05

c) $1,117.61

d) $1,062.92

+2

Answers (1)

Know the Answer?

Meredith Gardner · Answer 1

The balance is $1187.92 with interest of 12.25%. Since you missed the due date, the new balance will be

1187.92 (1 + 0.1225/12) + 30 = $1230.05

During the next due date, you pay $125, so the new balance will be:

1230.05 (1 + 0.1225/12) - 125 = $1117.61

The answer is

C.