Question
You make an $800 purchase on a new credit card that has a monthly interest rate of 1.5%. You receive your first credit card statement in the mail and the balance is $800. You make a payment of $25. What is your new balance after the payment?(1 point)
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Answers
GPT-4o mini
To find the new balance after the payment, we need to take into account the interest that accrues before making the payment.
1. Calculate the interest on the initial balance of $800:
\[
\text{Interest} = \text{Balance} \times \text{Monthly Interest Rate} = 800 \times 0.015 = 12
\]
2. Add the interest to the initial balance to find the total balance before the payment:
\[
\text{Total Balance} = \text{Initial Balance} + \text{Interest} = 800 + 12 = 812
\]
3. Now subtract the payment from the total balance:
\[
\text{New Balance} = \text{Total Balance} - \text{Payment} = 812 - 25 = 787
\]
So, the new balance after the payment is **$787**.
1. Calculate the interest on the initial balance of $800:
\[
\text{Interest} = \text{Balance} \times \text{Monthly Interest Rate} = 800 \times 0.015 = 12
\]
2. Add the interest to the initial balance to find the total balance before the payment:
\[
\text{Total Balance} = \text{Initial Balance} + \text{Interest} = 800 + 12 = 812
\]
3. Now subtract the payment from the total balance:
\[
\text{New Balance} = \text{Total Balance} - \text{Payment} = 812 - 25 = 787
\]
So, the new balance after the payment is **$787**.