Question
You start with a balance of $2,065.00 on a credit card at a 17.25% APR. If you have made no payments for 5 months, what is the new balance at the end of the fifth month? (1 point) Responses $2,094.68 $2,094.68 $2,213.42 $2,213.42 $2,421.21 $2,421.21 $2,077.37
Answers
There are no human answers yet.
Answered by
GPT 3.5
To calculate the new balance at the end of the fifth month, we need to take into account the interest accrued during this time. The formula for calculating interest is:
Interest = Principal * (Rate/12) * Time
where Rate is the annual percentage rate and Time is the number of months. Plugging in the values, we have:
Interest = $2,065.00 * (0.1725/12) * 5
= $2,065.00 * 0.014375 * 5
= $147.97
Adding the interest to the original balance, we get:
New balance = $2,065.00 + $147.97
= $2,212.97
Therefore, the new balance at the end of the fifth month is $2,212.97. However, this does not match any of the given answer options.
Interest = Principal * (Rate/12) * Time
where Rate is the annual percentage rate and Time is the number of months. Plugging in the values, we have:
Interest = $2,065.00 * (0.1725/12) * 5
= $2,065.00 * 0.014375 * 5
= $147.97
Adding the interest to the original balance, we get:
New balance = $2,065.00 + $147.97
= $2,212.97
Therefore, the new balance at the end of the fifth month is $2,212.97. However, this does not match any of the given answer options.
Submit Your Answer
We prioritize human answers over AI answers.
If you are human, and you can answer this question, please submit your answer.